2019-11-15T13:42:44-06:00 2019-06-30 Grant Thornton LLP 1000 WILSON BLVD SUITE 1400 ARLINGTON VA 22209 990 2018-07-01 131656692 United States Pharmacopeial Convention % STANLEY D BURHANS UNIT 3018810666 12601 Twinbrook Parkway Rockville MD 20852 STANLEY D BURHANS SVP & CFO 3018810666 2019-11-13 true mary torretta P00847851 7038477500 209.220.64.52 54681420193195000000 2019-11-15 P F3025B962F5CDC81089D134DBE2E83273904A17C AF43BCBFB463DBE6E0B6D26B9026FA7ED08740F8 2018 2020-04-17 16:48:07Z Ronald T Piervincenzi 12601 Twinbrook Parkway Rockville MD 20852 380692141 false X www.usp.org X 1820 MD TO IMPROVE THE HEALTH OF PEOPLE AROUND THE WORLD THROUGH PUBLIC STANDARDS AND RELATED PROGRAMS THAT HELP ENSURE THE QUALITY, SAFETY, AND BENEFIT OF MEDICINES AND FOODS. 13 13 962 832 0 0 15639809 15062188 301027589 312071879 6820768 5443441 751509 302473 324239675 332879981 449008 710288 0 0 139278542 142741953 0 0 1812318 140321336 157193175 280048886 300645416 44190789 32234565 496726502 541192214 171996182 181762213 324730320 359430001 X USP'S MISSION IS TO IMPROVE GLOBAL HEALTH THROUGH PUBLIC STANDARDS AND RELATED PROGRAMS THAT HELP ENSURE THE QUALITY, SAFETY, AND BENEFIT OF MEDICINES AND FOODS. false false 167272496 0 305130377 SEE SCHEDULE O. 9784132 710288 4723112 SEE SCHEDULE O. 17832000 0 2218390 SEE SCHEDULE O. 194888628 true true false true false false false false false false true false false true false true false true false true true true true false false false false true true true true false false false false false false false false false false true false false false true true true true false false true X 147 0 true 962 true true true true BR CH IN GH ET NI RP ID SN SZ false false false false false false false false false false X 13 13 false false false false true true true true true false false true true true true true true true true false MD X STANLEY D BURHANS 3019986781 12601 TWINBROOK PARKWAY Rockville MD 20852 Jesse L Goodman MD MPH President 4.0 0.0 X 0 0 0 Timothy R FransonBS PharmMD Past President 4.0 0.0 X 0 0 0 John E Courtney PHD Treasurer 4.0 0.0 X 0 0 0 Laura Herman MBA MA Public Trustee 4.0 0.0 X 0 0 0 Robert J Meyer MD Medical Sciences Trustee 4.0 0.0 X 0 0 0 Gregory E Amidon PHD Pharmaceutical Trustee 4.0 0.0 X 0 0 0 Marilyn K Speedie PHD Pharmaceutical Trustee 4.0 0.0 X 0 0 0 Todd K Abraham PhD MBA At-Large Trustee 4.0 0.0 X 0 0 0 Thomas R Temple BS PharmMS At-Large Trustee 4.0 0.0 X 0 0 0 Gail R Wilensky PhD At-Large Trustee 4.0 0.0 X 0 0 0 Satyanarayana Chava PhD At-Large Trustee 4.0 0.0 X 0 0 0 Susan Winckler BS PharmJDFA Chair 4.0 0.0 X 0 0 0 Paul Chew MD Medical Sciences Trustee 4.0 0.0 X 0 0 0 Ronald T Piervincenzi CEO 38.0 0.0 X 868419 0 135471 Jakob Venema EVP, Chief Science Officer 38.0 0.0 X 532207 0 96494 Susan S De Mars EVP, Chief Legal Officer 38.0 0.0 X 521297 0 97868 Stanley D Burhans CFO 38.0 0.0 X 420402 0 46251 Scott P Henderson SVP, Info and Services 38.0 0.0 X 411404 0 48416 Hermes Van Der Lee SVP, Global Lab Ops 38.0 0.0 X 356929 0 40930 Anthony P Lakavage SVP, Global External Affairs 38.0 0.0 X 429098 0 86844 Salah D Kivlighn SVP, Global SMPO 38.0 0.0 X 402324 0 47508 Emily M Kaine SVP, Global Public Health 38.0 0.0 X 352824 0 37135 Bruk Alemayehu SVP, Science 38.0 0.0 X 347568 0 41819 Amanda Cowley SVP, Strategy and BD 38.0 0.0 X 344580 0 40819 4987052 0 719555 544 false true false ERNST YOUNG LLP 5 TIMES SQUARE NEW YORK CITY NY 10036 CONSULTING 4299347 EMCOR SERVICES CES INC 2800 CRYSTAL DRIVE ARLINGTON VA 22202 FACILITIES SERVICES 1798119 CENSEO CONSULTING GROUP 1776 EYE STREET NW WASHINGTON DC 20006 CONSULTING 1739000 UMBREX CONSULTING LLC 250 WEST 50TH SUITE 17H NEW YORK CITY NY 10019 CONSULTING 1731313 AEROTEK INC 3689 COLLECTION CENTER DRIVE CHICAGO IL 60693 TEMPORARY STAFFING 1402688 72 12777000 2285188 2285188 15062188 COMPENDIAL ACTIVITIES 511190 305130377 305130377 0 0 ALLIED COMPENDIAL ACTIVITIES 900099 4723112 4723112 0 0 NON-COMPENDIAL ACTIVITIES 900099 2218390 2218390 0 0 312071879 5719223 5719223 0 77286 77286 0 0 0 47535100 1278 47374222 437938 160878 -436660 -275782 -275782 0 0 0 0 0 0 0 0 0 OTHER REVENUE 900099 225187 0 0 225187 225187 332879981 312071879 0 5745914 153823 153823 438748 438748 117717 117717 0 4987050 2467092 2441661 78297 0 113817788 76390151 36540070 887567 9079063 6026269 2978983 73811 8119730 5389507 2664211 66012 6738322 4472592 2210949 54781 0 1648467 1648467 507450 507450 276821 276821 0 477961 477961 44610755 22249707 22029263 331785 3651245 2890574 650351 110320 2754730 1570821 1170761 13148 6534047 902440 5631607 0 6449798 2693997 3755801 5239413 3757012 1335479 146922 0 3704690 3015589 666364 22737 3830151 3830151 39778848 39448156 330692 12004038 1753489 10250549 883848 883848 COGS 15958013 15958013 0 0 VALIDATION & CALIBRATION 3403087 2407358 995729 0 PUBLICATIONS/SUBSCRIPTIONS 1929137 1461388 467689 60 BANK & CREDIT CARD FEES 1771074 0 1771074 0 1779602 1324185 428539 26878 300645416 194888628 103944470 1812318 56217607 23736939 25174076 46230889 1730325 2129849 34958542 38958802 0 0 0 0 0 0 50046831 52990867 4375985 8129994 230042896 102005266 130210589 128037630 135911818 177373097 15360608 19714841 0 0 0 0 42740121 43889306 496726502 541192214 52864810 61173951 0 0 10503517 11876733 108627855 108711529 0 0 0 0 0 0 0 0 0 0 171996182 181762213 X 324730320 359430001 0 0 0 0 324730320 359430001 496726502 541192214 X 32234565 1191831 11062 1262223 X false true X true true true X 14764699 16140116 17695635 15639809 15062188 79302447 208520967 243965321 269667551 301027589 312071879 1335253307 0 0 0 223285666 260105437 287363186 316667398 327134067 1414555754 0 0 0 1414555754 4408014 2931424 2780281 3152904 5796509 19069132 0 4408014 2931424 2780281 3152904 5796509 19069132 0 968469 297050 -2821002 440240 225187 -890056 228662149 263333911 287322465 320260542 333155763 1432734830 0.98731 0.98771 0.01331 0.01263 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 276821 276821 229127343 229404164 1000000 250000 1000000 1000000 1000000 1000000 4000000 6000000 195325 429475 405492 276821 1307113 250000 250000 250000 250000 1000000 1500000 9389846 9389846 119034312 36329448 82704864 12540867 4200263 8340604 84656123 61475555 23180568 4421748 4421748 128037630 INVESTMENT IN FOREIGN SUBS. 40889214 TRANSAMERICA 457(B) PLAN 2663277 DEPOSITS 336815 43889306 0 0 X LIABILITY FOR UNCERTAIN TAX POSITIONS (ASC 740) SCHEDULE D, PART X, LINE 2 USPC FOLLOWS GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, INCLUDING ISSUES RELATING TO FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT. THIS GUIDANCE PROVIDES THAT THE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION CAN ONLY BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THE POSITION IS "MORE-LIKELY-THAN-NOT" TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. USPC IS EXEMPT FROM FEDERAL INCOME TAX UNDER IRC SECTION 501(C)(3), THOUGH IT IS SUBJECT TO TAX ON INCOME UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE CODE. USPC HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; TO DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS; AND TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. THE TAX YEARS ENDING JUNE 30, 2019, 2018, 2017 AND 2016 ARE STILL OPEN TO AUDIT FOR BOTH FEDERAL AND STATE PURPOSES. USPC HAS DETERMINED THAT THERE ARE NO MATERIAL UNRELATED BUSINESS ACTIVITIES OR UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. true South America 1 46 Program Services Compendial 10623446 East Asia and the Pacific 1 73 Program Services Compendial 11804115 South Asia 1 201 Program Services Compendial 13260149 Europe (Including Iceland and Greenland) 1 5 Program Services Sales Office 2156973 Sub-Saharan Africa 1 17 Program Services USP Ghana 813045 East Asia and the Pacific Investments 18085711 South America Investments 5152639 South Asia Investments 14770803 Sub-Saharan Africa Investments 1410095 East Asia and the Pacific 1 3 Program Services PQM OFFICE/USAID 882276 Sub-Saharan Africa 1 5 Program Services PQM OFFICE/USAID 449440 Europe (Including Iceland and Greenland) Grantmaking 100217 East Asia and the Pacific Grantmaking 17500 7 350 7 350 79526409 79526409 Europe (Including Iceland and Greenland) 85217 East Asia and the Pacific 17500 Europe (Including Iceland and Greenland) 15000 2 1 true false true false false true PROCEDURES FOR MONITORING THE USE OF GRANTS OUTSIDE U.S. SCHEDULE F, PART I, LINE 2 USP WILL ESTABLISH A SPECIFIC REPORTING PROCESS AND TIMING WITH EACH FOREIGN GRANT RECIPIENT. THE REPORTING METHODOLOGY AND TIMING OF THE REPORTS WILL VARY ON A PER GRANT BASIS. AT A MINIMUM, THE GRANTEE WILL BE EXPECTED TO PROVIDE A NARRATIVE STATEMENT AS TO THE PROGRESS MADE IN ACCOMPLISHING THE PURPOSE OF THE GRANT. ACCOUNTING METHOD USED SCHEDULE F, PART I, LINE 3, COLUMN F THE EXPENDITURES, PER REGION, ARE PRESENTED ON THE ACCRUAL BASIS OF ACCOUNTING. true Project hope 255 Carter Hall Lane Millwood VA 22646 530242962 501(C)(3) 25000 0 60th Anniversary Gala Sponsorship WOMEN DELIVER INC 588 BROADWAY STE 905 NEW YORK NY 10012 264462256 501(C)(3) 25000 0 WOMEN DELIVER CONFERENCE NEWARK MENTORING MOVEMENT 60 Park Place Suite 601 Newark NJ 07102 455092471 501(C)(3) 17000 0 COUNCIL FOR RESPONSIBLE NUTRITION 1828 L Street NW Suite 510 Washington DC 20036 520975324 501(C)(6) 15000 0 Association for Accessible Medicines - AAM 601 NEW JERSEY AVE NW STE 850 WASHINGTON DC 20001 522252820 501(C)(6) 15000 0 AMERICAN ASSC OF PHARMACEUTICAL SCIENTISTS 2107 Wilson Blvd 700 Arlington VA 22201 521444968 501(C)(3) 12374 0 Annual Dinner AMERICAN BOTANICAL COUNCIL PO BOX 144345 AUSTIN TX 78714 742518542 501(C)(3) 11000 0 GOLD SPONSOR MEMBERSHIP RENEWAL NATIONAL CONSUMERS LEAGUE INC 1701 K Street NW Suite 1200 WASHINGTON DC 20006 530242038 501(C)(3) 10000 0 2018 Trumpeter Awards Dinner Contribution AOAC INTERNATIONAL 2275 Research Blvd Suite 300 Rockville MD 20850 530029357 501(C)(3) 6450 0 Annual sponsorship CASSS Sharing Science Solutions 5900 Hollis Street Suite R3 Emeryville CA 94608 770048350 501(C)(6) 6000 0 WCBP 2019 Welcome Reception C&O CANAL TRUST INC 1850 DUAL HWY STE 100 HAGERSTOWN MD 21740 300401642 501(C)(3) 6000 0 Canal Trust Park after Dark Sponsorship 8 3 2018-2019 USP AFPE & GLOBAL FELLOWSHIPS 7 438748 0 PROCEDURE FOR MONITORING USE OF GRANT FUNDS INSIDE U.S. SCHEDULE I, PART I, LINE 2 USP HAS ESTABLISHED A SPECIFIC REPORTING PROCESS AND TIMING WITH EACH INDIVIDUAL GRANT RECIPIENT. THE REPORTING METHODOLOGY AND TIMING OF THE REPORTS WILL VARY ON A PER GRANT BASIS. AT A MINIMUM, THE GRANTEE WILL BE EXPECTED TO PROVIDE A NARRATIVE STATEMENT AS TO THE PROGRESS MADE IN ACCOMPLISHING THE PURPOSE OF THE GRANT. Organizations receiving monetary support from USP in the form of sponsorship provide USP with acknowledgement of the receipt and confirmation that the uses of the funds provided were for the stated and agreed to purpose. X X X X false true false false false false false true false Ronald T Piervincenzi CEO 669810 0 198609 0 0 0 105342 0 30129 0 1003890 0 0 0 Jakob Venema EVP, Chief Science Officer 430125 0 102082 0 0 0 71721 0 24773 0 628701 0 0 0 Susan S De Mars EVP, Chief Legal Officer 421169 0 100128 0 0 0 70630 0 27238 0 619165 0 0 0 Stanley D Burhans CFO 339816 0 80586 0 0 0 41956 0 4295 0 466653 0 0 0 Scott P Henderson SVP, Info and Services 340359 0 71045 0 0 0 41140 0 8248 0 460792 0 0 0 Hermes Van Der Lee SVP, Global Lab Ops 295379 0 61550 0 0 0 35693 0 8009 0 400631 0 0 0 Anthony P Lakavage SVP, Global External Affairs 356224 0 72874 0 0 0 61410 0 25434 0 515942 0 0 0 Salah D Kivlighn SVP, Global SMPO 332945 0 69379 0 0 0 40232 0 9876 0 452432 0 0 0 Emily M Kaine SVP, Global Public Health 291924 0 60900 0 0 0 35282 0 2051 0 390157 0 0 0 Bruk Alemayehu SVP, Science 276379 0 71189 0 0 0 34543 0 9876 0 391987 0 0 0 Amanda Cowley SVP, Strategy and BD 278005 0 66575 0 0 0 34458 0 14159 0 393197 0 0 0 SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN Schedule J, Part I, Line 4b The following individuals participate in the supplemental nonqualified retirement plan and received deferrals from this plan: Ronald T. Piervincenzi $77,842 Jakob Venema $44,221 Susan De Mars $43,130 Stanley Burhans $14,456 Scott P. Henderson $13,640 Hermes Van Der Lee $8,193 Salah Kivlighn $12,732 Anthony P. Lakavage $33,910 Bruk Alemayehu $7,043 Emily M. Kaine $7,782 Amanda D. Cowley $6,958 Nonfixed Payments Schedule J, Part I, line 7 USP provides incentive compensation that is commensurate with the accomplishment of stated goals. Each individual officer, key employee, or highly compensated employee has an annual goal plan. Based on the accomplishment of those individual stated goals, the individual is eligible for a bonus which is within a fixed percentage range. Bonuses are considered as part of the total compensation when determining reasonableness. A MARYLAND ECONOMIC DEVELOPMENT CORPORATION 521376562 000000000 2012-03-29 109360000 Cur refun of 2008&2009 Tx-ex bonds false false false A 0 0 109360000 0 0 0 0 0 4524 0 109355476 0 true false true true A false false false true false true 0 false false false true A false true false false false false 0 false 0 false true A true X Contributed Raw Material 240 2285189 Replacement Cost false true false NUMBER OF CONTRIBUTIONS SCHEDULE M, PART I, COLUMN B THE NUMBERS LISTED IN PART I, COLUMN B, REFLECT THE NUMBER OF individual CONTRIBUTIONS received. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A COMPENDIAL PROGRAMS - USP ESTABLISHES INTERNATIONALLY RECOGNIZED PUBLIC STANDARDS (BOTH DOCUMENTARY STANDARDS AND THE PHYSICAL REFERENCE MATERIALS THAT SUPPORT THE APPLICATION AND USE OF THESE DOCUMENTARY STANDARDS) TO HELP ASSURE GOOD QUALITY MEDICINES, DIETARY SUPPLEMENTS, FOOD INGREDIENTS, AND RELATED PRODUCTS USED TO MAINTAIN HEALTH AND TREAT DISEASE. THESE STANDARDS ARE DEVELOPED USING AN OPEN, PUBLIC PROCESS AND ARE APPROVED BY INDEPENDENT SCIENTIFIC EXPERTS. PRESCRIPTION AND OVER THE COUNTER MEDICINES AVAILABLE IN THE UNITED STATES MUST, BY FEDERAL LAW, MEET USP'S PUBLIC STANDARDS, WHERE SUCH STANDARDS EXIST. MANY OTHER COUNTRIES REQUIRE THE USE OF HIGH-QUALITY STANDARDS SUCH AS USP'S TO ASSURE THE QUALITY OF MEDICINES, FOOD INGREDIENTS, AND RELATED PRODUCTS. USP DISSEMINATES ITS STANDARDS TO PHARMACEUTICAL MANUFACTURERS, PHARMACISTS, FOOD MANUFACTURERS, AND OTHER USERS THROUGH ITS USP-NF, FOOD CHEMICALS CODEX (FCC), OTHER COMPENDIA AND PUBLICATIONS, AND OFFICIAL USP REFERENCE STANDARD MATERIALS. THESE STANDARDS ARE SHARED WITH OTHER COUNTRIES AROUND THE WORLD VIA THEIR DRUG REGULATORY AGENCIES AND COMPANIES. INCREASINGLY, DRUG REGULATORY AUTHORITIES IN OTHER COUNTRIES ARE RECEIVING ASSISTANCE FROM USP IN UNDERSTANDING HOW THEY CAN IMPROVE THE QUALITY OF MEDICINES PROVIDED TO THEIR CITIZENS BY USING USP STANDARDS. VOLUNTEER EXPERTS FROM THOSE COUNTRIES ARE ACTIVE PARTICIPANTS IN USP'S STANDARDS-SETTING BODIES. IN ADDITION, USP DEVELOPS STANDARDS THAT ARE VITAL TO ENSURING AND IMPROVING PATIENT SAFETY IN A VARIETY OF SETTINGS RELATED TO THE APPROPRIATE LABELING, STORAGE, DISTRIBUTION AND USE OF MEDICINES. HEALTH CARE CLINICIANS AS WELL AS PATIENTS RELY ON THESE STANDARDS TO HELP ENSURE THAT MEDICINES ARE DELIVERED AND USED APPROPRIATELY. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4B ALLIED COMPENDIAL PROGRAMS - USP CONDUCTS VERIFICATION PROGRAMS FOR PHARMACEUTICAL INGREDIENTS, AND FOR DIETARY SUPPLEMENT INGREDIENTS AND PRODUCTS. THESE PROGRAMS INVOLVE INDEPENDENT TESTING AND REVIEW TO VERIFY THE IDENTITY, STRENGTH, QUALITY AND PURITY OF INGREDIENTS AND PRODUCTS FOR MANUFACTURERS WHO CHOOSE TO PARTICIPATE. THEY HELP TO IMPROVE THE QUALITY OF MEDICINES AND DIETARY SUPPLEMENTS THAT ARE MANUFACTURED AND THEN PROVIDED TO PATIENTS AND CONSUMERS THROUGH THE GLOBAL SUPPLY CHAIN. USP CONDUCTS EDUCATIONAL CLASSES AND PROGRAMS FOR CHEMISTS, SCIENTISTS, AND HEALTHCARE PRACTITIONERS IN THE UNITED STATES AND AROUND THE WORLD. USP SEEKS TO IMPROVE THE EFFECTIVE USE OF ITS STANDARDS THAT AFFECT BEST PRACTICES IN MANUFACTURING AND REGULATION OF PHARMACEUTICALS, DIETARY SUPPLEMENTS, AND FOOD INGREDIENTS. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4C NON-COMPENDIAL - USPS GLOBAL PUBLIC HEALTH DIVISION CONTRIBUTES TO IMPROVED GLOBAL HEALTH BY ENSURING THE AVAILABILITY OF RELEVANT PUBLIC STANDARDS FOR THE WORLDS MOST ESSENTIAL MEDICINES, SUPPORTING THE GLOBAL MANUFACTURING SECTOR TO INCREASE THE SUPPLY OF QUALITY ASSURED MEDICINES, AND STRENGTHENING NATIONAL AND REGIONAL REGULATORY SYSTEMS TO SUPPORT IMPROVED QUALITY ASSURANCE SYSTEMS, GLOBALLY. USP IMPLEMENTS ITS PROMOTING THE QUALITY OF MEDICINES (PQM) PROGRAM IN PARTNERSHIP WITH USAID, TO ENSURE THE QUALITY OF MEDICINES IN MORE THAN 30 COUNTRIES AROUND THE WORLD. THROUGH OUR ADVANCED TRAINING AND LABORATORY FACILITY IN GHANA, USP SUPPORTS WORKFORCE DEVELOPMENT IN AFRICA TO SUPPORT CONTINUED IMPROVEMENT OF PHARMACEUTICAL QUALITY ASSURANCE AND QUALITY CONTROL EFFORTS IN THE REGION. USP MAINTAINS FOUR REGIONAL NETWORKS OF OFFICIAL MEDICINES CONTROL LABORATORIES (NOMCOL) WHICH HELP BUILD REGIONAL COOPERATION AND SUSTAINABLE CAPACITY FOR ONGOING EFFORTS TO ASSURE THE QUALITY OF MEDICINES, GLOBALLY. USP STANDARDS ARE MADE AVAILABLE TO REGULATORS IN LOWER AND MIDDLE INCOME COUNTRIES AT NO COST, OR AT SHARPLY DISCOUNTED COST. IN ADDITION, USP PROVIDES DIRECT TECHNICAL ASSISTANCE THROUGH A NUMBER OF OTHER GLOBAL HEALTH IMPACT PROGRAMS. USP ENGAGES IN OTHER PUBLIC HEALTH INITIATIVES INCLUDING SERVING AS THE SECRETARIAT FOR A MAJOR GROUP OF OTHER NON-PROFIT ORGANIZATIONS THAT JOIN TO COORDINATE PATIENT SAFETY/MEDICAL ERROR EFFORTS. UNDER FEDERAL LAW, ONE OF USP'S HEALTH CARE INFORMATION INITIATIVES IS THE DEVELOPMENT OF A DRUG CLASSIFICATION SYSTEM THAT MEDICARE PRESCRIPTION DRUG BENEFIT PLANS MAY USE TO DEVELOP THEIR FORMULARIES. MEMBERS OR STOCKHOLDERS FORM 990, PART VI, LINE 6 The members of USP are representatives from organizations in the US and abroad in the following categories: - Health Practitioner professional and scientific associations - Consumer and other public interest organizations - Manufacturer, trade, and affiliated associations - Governmental bodies, divisions, or associations - Non-government standards-setting and conformity assessment bodies MEMBERS OR STOCKHOLDERS WHO MAY ELECT AND DECISIONS SUBJECT TO APPROVAL FORM 990, PART VI, LINES 7A & 7B THE MEMBERS OF USP ELECT THE MEMBERS OF THE BOARD OF TRUSTEES AT EACH FIVE-YEAR MEETING OF THE CONVENTION. UP TO THREE ADDITIONAL TRUSTEES MAY BE APPOINTED BY THE BOARD DURING THE FIVE-YEAR CYCLE. GOVERNANCE DECISIONS OF THE ORGANIZATION RESERVED TO MEMBERS INCLUDE ELECTING THE BOARD OF TRUSTEES (BoT) AND THE COUNCIL OF EXPERTS (CoE) AS WELL AS AMENDING BYLAWS AND ADOPTING RESOLUTIONS. FORM 990 REVIEW PROCESS FORM 990, PART VI, LINE 11B THE FORM 990 WAS REVIEWED BY THE CHIEF FINANCIAL OFFICER AND PRESENTED TO CURRENT USP OFFICERS AS WELL AS THE AUDIT COMMITTEE AND APPROVED BY THE FULL BOARD PRIOR TO FILING WITH THE IRS. CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT FORM 990, PART VI, LINE 12C USP's conflict of interest policy is reflected in its bylaws and in its code of ethics. This policy is implemented with respect to our employees and volunteers (members of the board of trustees and the council of experts and expert committees, USP's standard setting bodies) through specific provisions in the employee handbook, the rules of business practice for the board of trustees, and the rules and procedures of the council of experts. All trustees, members of the council of experts and expert committees, and employees in director level or above positions or positions where they work with expert committees are required to submit and keep current a disclosure statement identifying any conflict of interest. For USP's volunteers, a conflict of interest is defined broadly under the bylaws to include a financial interest in a company or any other relationship or interest that could interfere with the individual's ability to exercise independent judgment. Trustees, experts and employees are required to recuse themselves from any matter in which they have a potential conflict, and employees may also be required to divest themselves of interests that present a potential conflict. At each meeting of the board and all expert committees, the chair reminds member of the conflict of interest rules. The identification and resolution of conflicts of interest is handled as follows for USP employees and volunteers: Employees: Disclosure statements are collected annually by the Global Compliance and Ethics Department from employees at the director level and above or who otherwise holds a position in which the employee actively participates in the standards-setting process. If an employee discloses that he or she has a financial interest above the specified threshold, the Vice President, Global Compliance and Ethics reviews the interest with the CEO. If the CEO determines that the interest is an isolated one and one that would be difficult to divest (e.g., a retirement plan from a former employer, or a spouse's employment), the employee is allowed to retain the interest but must recuse himself/herself in any situation where there is a potential conflict. In other cases, such as where there are multiple interests above the threshold, the CEO may ask the employee to divest. Members of the Board of Trustees: Disclosure statements are collected by the secretary, and the board members have an obligation to update them as necessary to keep them current. If a board member has a potential conflict, then in accordance with the bylaws he or she must recuse himself/herself from any final deliberation and vote in the matter. Council of Experts and Expert Committee Members: Disclosure statements are collected by the executive secretariat, and members have an obligation to update them as necessary to keep them current. The chair of each expert committee, working with staff (scientific liaison/executive secretariat), has responsibility for resolving conflict issues. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, LINES 15A & 15B The USP Board of Trustees approved a total compensation philosophy with the following key provisions: 1. USP will link base pay and variable pay to performance in such a way that it aligns with USP's strategic planning process and outcome-based metrics, and results in differential rewards. 2. USP will continually evaluate and realign performance measures to conform to changing strategic goals and other business needs. 3. USP's total cash compensation program will be designed using a market-driven whole job family structure to deliver above average total compensation, direct and indirect, relative to those offered within various labor markets in which USP competes for talent. The total compensation package will be established, reviewed, and approved in a manner that qualifies for the rebuttable presumption of reasonableness and will be reviewed periodically to ensure that it continues to be aligned with USP's strategic direction and financial limits and continues to be both reasonable and competitive. Under the rules of business practice of the Board of Trustees is responsible for overseeing the organization's compensation and benefits systems and programs, including: - Reviewing and making recommendations to the Board regarding the overall compensation philosophy and principles of the organization. - Reviewing the structure of the staff compensation program, including salary levels, benefits, and the success sharing plan and the extent to which they are achieving desired purposes. - Reviewing and making recommendations to the executive committee and the board regarding employee benefit plans and employee benefits, with the board retaining responsibility for final approval of the insurer or insurers through whose policies the plan benefits are to be funded and the rules and procedures for administration of the plan. - Based on input from the CEO reviewing and making recommendations to the Board regarding the proposed metrics for organizational performance under the success sharing plan, and the achievement of such metrics. HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC FORM 990, PART VI, LINE 19 USP MAKES THESE DOCUMENTS AVAILABLE TO THE PUBLIC TO THE EXTENT REQUIRED BY LAW AND UPON REQUEST. Other Changes in Net Assets or Fund Balance Form 990, Part XI, Line 9 Unrealized gain on foreign exchange 443,349 Elimination of intercompany payables 1,137,359 Reclass of intercompany receivables (318,485) ------------ TOTAL 1,262,223 FORM 990 PART IX LINE 11G DESCRIPTION:PROFESSIONAL SERVICES TOTAL FEES:34064446 FORM 990 PART IX LINE 11G DESCRIPTION:RECRUITMENT TOTAL FEES:1362990 FORM 990 PART IX LINE 11G DESCRIPTION:TRAINING TOTAL FEES:935327 FORM 990 PART IX LINE 11G DESCRIPTION:AGENCY TEMPS TOTAL FEES:3407723 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING TOTAL FEES:4840269 USP HOLDING LLC 12601 TWINBROOK PARKWAY ROCKVILLE MD 20852 562515663 HOLDING MD USP USP HOLDING INTERNATIONAL LLC 12601 TWINBROOK PARKWAY ROCKVILLE MD 20852 562515662 HOLDING MD USP United States Pharmacopeia - Ghana No3 Park Ave motorway extn Accra GH wy 1204 131656692 pharm train GH foreign USP Holding true US PHARMACOPEIA NIGERIA LTDGTE 2 Connal Road LAGOS NI SCIENTIFIC NI USPC C Corp -189879 2701073 1.00000 true US PHARMACOPEIA PHILIPPINES INC 3/F Midway Court Edsa Wack Wack MANILA RP SCIENTIFIC RP USPC C Corp 927 231167 1.00000 true UNITED STATES FARMACOPEIA BRASIL LTDA WTORRE TECHNOLOGY PARK AVENIDA CECI N SAO PAULO BR 131656692 SCIENTIFIC BR USPHUSPHI C Corp 1410641 7393935 1.00000 true US PHARMACOPEIA STND RESEARCH & DEV Waigaoqiao Free Trade 520 NFu Te SHANGHAI CH 200131 131656692 SCIENTIFIC CH USP HOLDING C Corp 638034 22197844 1.00000 true US PHARMACOPEIA INDIA PRIVATE LTD ICICI KNOWLEDGE PARK GENOME VALLEY HYDERBAD IN 131656692 SCIENTIFIC IN USPHUSPHI C Corp 1019586 19568012 1.00000 true US PHARMACOPEIA-SINGAPORE PTELTD 8 MARINA BLVD 05-02 SN 018981 131656692 SCIENTIFIC SN USP HOLDING C Corp 47169 891839 1.00000 true US PHARMACOPEIA SWITZERLAND AG Munchensteinerstrasse 41 BASEL SZ 4052 131656692 SCIENTIFIC SZ USP Holding C Corp -221513 104610 1.00000 true false false false false false false false false false false false false true false false false true true false UNITED STATES PHARMACOPEIA - GHANA r 380000 Cash US PHARMACOPEIA-SINGAPORE PTELTD r 493460 Cash US PHARMACOPEIA SWITZERLAND AG r 101667 Cash UNITED STATES PHARMACOPEIA BRASIL LTDA m 919950 fmv US PHARMACOPEIA STND RESEARCH & DEV m 1452678 fmv US PHARMACOPEIA INDIA PRIVATE LTD m 5929900 fmv UNITED STATES PHARMACOPEIA - GHANA m 684654 fmv US PHARMACOPEIA-SINGAPORE PTELTD m 685435 fmv US PHARMACOPEIA INDIA PRIVATE LTD Q 98869 CASH UNITED STATES PHARMACOPEIA - GHANA Q 477560 CASH US PHARMACOPEIA SWITZERLAND AG Q 224912 CASH