2019-05-14T13:28:24-05:00 2018-06-30 232108173 RKL LLP 1330 BROADCASTING ROAD PO BOX 7008 WYOMISSING PA 196106008 990 2017-07-01 251847902 KEYSTONE HUMAN SERVICES KEYS 7172327509 4391 STURBRIDGE DRIVE HARRISBURG PA 17110 CHARLES S SWEEDER VP OF FINANCE 7172327509 2019-05-14 1 RUTHANN J WOLL CPA P00647342 6103761595 2019-05-14 50.203.63.190 2019-05-14 10:10:04 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 BF806157A52785AD0FEADB80BD57235400E63FA7 2017 2019-02-21 02:37:17Z X CHARLES J HOOKER III 4391 STURBRIDGE DRIVE HARRISBURG PA 17110 13469225 0 X WWW.KEYSTONEHUMANSERVICES.ORG X 1999 PA KEYSTONE HUMAN SERVICES CREATES OPPORTUNITIES FOR GROWTH AND MEANINGFUL LIFE CHOICES SO THAT ALL PEOPLE CAN BE VALUED, CONTRIBUTING MEMBERS OF THEIR COMMUNITY. FOR OVER 40 YEARS, KEYSTONE ORGANIZATIONS HAVE DEVELOPED A WIDE RANGE OF SERVICES AND SUPPORT FOR ADULT, CHILDREN, AND FAMILIES. 12 12 97 12 0 67436 84528 93827 11708204 13213410 -2042 1426 154391 160562 11945081 13469225 0 0 0 0 7192702 7668143 0 0 0 4705851 5972259 11898553 13640402 46528 -171177 39760308 44413598 13922204 11475572 25838104 32938026 X KEYSTONE HUMAN SERVICES (KHS) CREATES OPPORTUNITIES FOR GROWTH AND MEANINGFUL LIFE CHOICES SO THAT ALL PEOPLE CAN BE VALUED, CONTRIBUTING MEMBERS OF THEIR COMMUNITY. FOR OVER 40 YEARS, KEYSTONE ORGANIZATIONS HAVE DEVELOPED A WIDE RANGE OF SERVICES AND SUPPORTS FOR ADULTS, CHILDREN, AND FAMILIES. 0 0 13640402 13373972 KEYSTONE ORGANIZATIONS (KEYSTONE) PROVIDE COMPREHENSIVE COMMUNITY-BASED SERVICES FOR CHILDREN, YOUNG PEOPLE, ADULTS AND FAMILIES IN THE AREAS OF INTELLECTUAL DISABILITIES, AUTISM, MENTAL HEALTH, EARLY INTERVENTION AND CHILDREN AND FAMILY SERVICES. KEYSTONE ACCOMPLISHES ITS MISSION THROUGH A FAMILY OF AGENCIES AND SUBSIDIARIES OF KEYSTONE HUMAN SERVICES (KHS).KHS SETS THE STRATEGIC DIRECTION FOR KEYSTONE, WHICH INCLUDES:1. APPLY HUMAN RESOURCE STRATEGIES AND POLICIES ESSENTIAL TO ACHIEVE OUR MISSION2. APPLY OUR EXPERTISE AND CAPACITY GLOBALLY 3. CONTINUE TO ACQUIRE STATE OF THE ART INFORMATION AND COMMUNICATION INFRASTRUCTURE TO SUPPORT THE STRATEGY AND MISSION OF THE ORGANIZATION4. DEVELOP, EXPAND, AND PROMOTE COMPREHENSIVE SYSTEMS OF CARE5. ESTABLISH A COMPREHENSIVE FUNDRAISING, DEVELOPMENT, MEDIA AND GRANT-WRITING CAPACITY 6. EXERCISE RESPONSIBLE STEWARDSHIP FOR THE RESOURCES AND CAPACITIES ENTRUSTED TO OUR CARE.7. ESTABLISH AND MAINTAIN A CAPITAL BASE APPROPRIATE TO SUSTAIN OUR MISSION AND RESPONSIBILITIES FOR THE LONG TERM8. PLAY A LEADERSHIP ROLE IN THE HUMAN SERVICES INDUSTRYKEYSTONE ACHIEVED THE FOLLOWING SIGNIFICANT ACCOMPLISHMENTS DURING THE FISCAL YEAR ENDED JUNE 30, 2018:OPERATING IN THE COMMONWEALTH OF PENNSYLVANIA AND THE STATE OF DELAWARE, KEYSTONE SERVICE SYSTEMS, INC. (KSS) PROVIDES INTELLECTUAL DISABILITIES SERVICES THROUGH INDIVIDUALS RECEIVING BEHAVIOR SUPPORTS, COMMUNITY PARTICIPATION SUPPORTS, LIFESHARING SERVICES, RESIDENTIAL SERVICES, AND SUPPORTED LIVING SERVICES. APPROXIMATELY 975 INDIVIDUALS RECEIVED KSS'S INTELLECTUAL DISABILITY SERVICES DURING THE FISCAL YEAR. KSS ALSO OPERATES ADULT MENTAL HEALTH SERVICES PROVIDING INDIVIDUALS PEER SUPPORTS, COMMUNITY RESIDENTIAL REHABILITATION, DOMICILIARY CARE, PSYCHIATRIC REHABILITATION, INTENSIVE CASE MANAGEMENT, AND SUPPORTED EMPLOYMENT. APPROXIMATELY 1,089 INDIVIDUALS RECEIVED KSS'S ADULT MENTAL HEALTH SERVICES DURING THE FISCAL YEAR. OPERATING IN THE STATE OF CONNECTICUT, KEY HUMAN SERVICES, INC. (KEY) EXPANDS KEYSTONE'S VISION OF COMMUNITY-BASED SUPPORT PROGRAMS. KEY PROVIDES A SELECTION OF SERVICES AND SUPPORTS INCLUDING COMMUNITY LIVING ARRANGEMENTS (GROUP HOMES), INDIVIDUAL AND FAMILY SUPPORTS, NURSING SERVICES, AND BIRTH TO THREE TO PEOPLE WITH DISABILITIES. INDIVIDUAL AND FAMILY SUPPORT INCLUDE AUTISM SERVICES, COMMUNITY TRAINING HOMES, INDIVIDUALIZED DAY SUPPORT, AND INDIVIDUALIZED HOME SUPPORT. KEY'S PURPOSE AND MISSION IS TO ACT AS A CHANGE AGENT FOR PEOPLE WITH DISABILITIES, CREATING OPPORTUNITIES THAT ENCOURAGE GROWTH AND MEANINGFUL LIFE CHOICES WHILE ASSISTING PERSONS IN FINDING HOME, HEALTH, FRIENDS, WORK, AND PRESENCE IN THEIR COMMUNITIES.KHS ADDED ITS NEWEST SUBSIDIARY PARTNERSHIPS FOR PEOPLE, INC. (PFP) IN APRIL 2018. PFP SHARES KEYSTONE'S COMMITMENT TO ADVANCING THE HUMAN SPIRIT, SUPPORTING REAL COMMUNITY INCLUSION, AND CELEBRATING EVERYDAY LIVES. LOCATED IN FLORHAM PARK NEW JERSEY, PFP HAS BEEN OPERATING FOR OVER 30 YEARS AND PROVIDES RESIDENTIAL AND COMMUNITY SUPPORTS, IN-HOME SUPPORTS, SUPPORTED EMPLOYMENT, LIFE SKILL MANAGEMENT, AND TRANSITIONAL SERVICES FOR INDIVIDUALS WITH DISABILITIES. PFP IS A LEADING PROVIDER OF INTELLECTUAL AND DEVELOPMENTAL DISABILITY SUPPORT IN NORTHERN AND CENTRAL NEW JERSEY.KEYSTONE PARTNERSHIP (KP) IS THE FUNDRAISING ORGANIZATION FOR KEYSTONE. THROUGHOUT THE FISCAL YEAR, FUNDS WERE RAISED ON BEHALF OF ALL KEYSTONE ORGANIZATIONS. SPECIFIC EFFORTS ARE DIRECTED TOWARDS THOSE PROGRAMS THAT ARE SIGNIFICANTLY DEPENDENT UPON PRIVATE DONATIONS TO FUND OPERATIONS. KP HELD ITS ANNUAL CHOCOLATEBALL AND CHOCOLATEFEST EVENTS AT THE HERSHEY LODGE IN HERSHEY, PENNSYLVANIA JANUARY 2018. KEYSTONE HUMAN SERVICES INTERNATIONAL (KHSI) IS DEDICATED TO ADVANCING THE MISSION AND VISION OF KHS INTERNATIONALLY. KHSI HAS PARTNERED WITH THE HANS FOUNDATION SINCE 2015 TO STRENGTHEN THE INCLUSION OF PEOPLE WITH DISABILITIES IN INDIA. THIS IS BEING ACCOMPLISHED THROUGH THE DEVELOPMENT OF KEYSTONE INSTITUTE INDIA. OVER THE PAST FISCAL YEAR, 2,100+ PARTICIPANTS HAVE PARTICIPATED AT KEYSTONE INSTITUTE INDIA EDUCATIONAL EVENTS AND CONSULTATIONS, FOR A TOTAL OF 8,190 PARTICIPANT HOURS. KHSI HAS AN INTERNATIONAL SUBSIDIARY, KEYSTONE HUMAN SERVICES INTERNATIONAL MOLDOVA ASSOCIATION (KHSIMA) LOCATED IN THE REPUBLIC OF MOLDOVA. DURING THE FISCAL YEAR KHSIMA MANAGED 10 INTEGRATED PROJECTS WHICH FOCUSED ON THE FOLLOWING AREAS: DEINSTITUTIONALIZATION AND PREVENTION OF INSTITUTIONALIZATION; PROMOTION OF RIGHTS OF PERSONS WITH DISABILITIES; INCLUSIVE EDUCATION; EMPOWERING PERSONS WITH DISABILITIES FOR ADVOCACY AND SELF-ADVOCACY; PROMOTION OF SOCIAL ENTREPRENEURSHIPS; MEDIA ADVOCACY, SUPPORTING PEOPLE IN COMMUNITIES FOLLOWING DEINSTITUTIONALIZATION AND NETWORKING FOR SOCIAL INCLUSION OF PERSONS WITH DISABILITIES. THROUGH ALL OF THIS WORK, KEYSTONE MOLDOVA IS ASSISTING THE MOLDOVAN GOVERNMENT PUT INTO EFFECT POLICIES AND PRACTICES REGARDING THE RIGHTS OF PEOPLE WITH DISABILITIES, IN PARTICULAR, FOCUSING ON THE UNJUST INSTITUTIONALIZATION OF CHILDREN AND ADULTS WITH INTELLECTUAL DISABILITIES. KEYSTONE AUTISM SERVICES SERVED OVER 250 INDIVIDUALS THROUGH IS ADULT COMMUNITY AUTISM PROGRAM, ADULT/ADOLESCENT VOCATIONAL AUTISM INITIATIVE OF LEHIGH, AND EARLY INTERVENTION SERVICES DURING THE FISCAL YEAR. KEYSTONE CONTINUED TO MEET ESTABLISHED FINANCIAL OBJECTIVES AIMED AT STRENGTHENING THE FINANCIAL BASE TO ASSURE LONG TERM COMMITMENTS OF SERVICE CAN BE HONORED WHILE AT THE SAME TIME MAINTAINED HIGH QUALITY OF SERVICES PROVIDED.KHS AND ALL OF THE KEYSTONE SUBSIDIARIES RECEIVED UNMODIFIED OPINIONS, THE HIGHEST LEVEL OF ASSURANCE AVAILABLE OF THEIR FINANCIAL STATEMENTS BY INDEPENDENT INTERNATIONAL AUDITING FIRM. NO SIGNIFICANT CORRECTIONS OR INTERNAL CONTROL RELATED MATTERS WERE NOTED BY THE AUDITING FIRM. 13640402 1 0 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 0 0 0 0 0 0 1 0 0 0 1 32 0 1 97 1 1 1 0 0 0 0 0 0 0 0 0 X 12 12 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X CHARLES S SWEEDER 7172327509 4391 STURBRIDGE DRIVE HARRISBURG PA 17110 DR JENNIFER CHAMBERS DIRECTOR 2.00 2.00 X 0 0 0 JEFFREY PICCOLA DIRECTOR 2.00 0.00 X 0 0 0 DR ROBERT COLMAN DIRECTOR 2.00 4.00 X 0 0 0 MARY KRATZER DIRECTOR 2.00 2.00 X 0 0 0 DON WITMAN DIRECTOR 2.00 4.00 X 0 0 0 TERRI SLOCOMB DIRECTOR 2.00 0.00 X 0 0 0 TOM FLOWERS DIRECTOR 2.00 0.00 X 0 0 0 DR MUKUND KULKARNI DIRECTOR 2.00 0.00 X 0 0 0 DON ENDERS DIRECTOR 2.00 0.00 X 0 0 0 SALLY KLEIN DIRECTOR 2.00 0.00 X 0 0 0 JAY LAYMAN DIRECTOR 2.00 0.00 X 0 0 0 STEPHEN RADER DIRECTOR 2.00 0.00 X 0 0 0 DENNIS W FELTY FOUNDING PRESIDENT 5.00 45.00 X 0 451477 150329 CHARLES J HOOKER III PRESIDENT & CEO 5.00 45.00 X 0 417185 93227 ROBERT BAKER VP 3.00 47.00 X 0 253947 25268 CHARLES SWEEDER VP FINANCE 3.00 47.00 X 0 219715 26054 L JOHN JABOUR CIO - BEG 9/2017 3.00 47.00 X 0 54400 487 JENNIFER ALLISON VP HUMAN RESOURCES 3.00 47.00 X 0 231527 7822 ANN H MOFFITT VP COMMDEVELOPMENT - THRU 6/17 3.00 47.00 X 0 151804 3573 KRISTINE KOONTZ VP, QUALITY & CLINICAL SERVICES 3.00 47.00 X 0 136783 8458 MARY BETH O'NEILL CEO, KEY 0.00 38.00 X 0 112870 7696 GERALD CASSIDY APPLICATIONS DIRECTOR - THRU 7/2017 38.00 0.00 X 141708 0 5171 ELIZABETH NEUVILLE ED, THE KEYSTONE INSTITUTE 38.00 0.00 X 140535 0 1426 GENEVIEVE FITZGIBBON DEPUTY DIRECTOR 38.00 0.00 X 126082 0 1285 CRAIG GIRSCH INFRASTRUCTURE DIRECTOR 38.00 0.00 X 120529 0 7119 JAMES LAGRAFFE ED. ID SERVICES - THRU 8/2017 38.00 0.00 X 121745 0 6239 650599 2029708 344154 8 0 1 0 NAVISITE INC PO BOX 10138 UNIONDALE NY 11555 TECHNOLOGY SERVICES 354131 KPMG LLP PO BOX 120522 DALLAS TX 75312 AUDIT SERVICES 294000 ORACLE AMERICA INC PO BOX 203448 DALLAS TX 75320 TECHNOLOGY SERVICES 273279 APPALACHIA TECHNOLOGIES LLC 5012 LENKER STREET MECHANICSBURG PA 17050 TECHNOLOGY SERVICES 200230 STREAMLINE HEALTHCARE SOLUTIONS LLC 510 EAST BUTLER COURT KALAMAZOO MI 49007 TECHNOLOGY SERVICES 180896 6 92412 1415 93827 MANAGEMENT SERVICES 561000 13213410 13213410 13213410 1426 1426 RENTAL INCOME 531120 160562 160562 160562 13469225 13373972 0 1426 6172619 6172619 412020 412020 672155 672155 411349 411349 216706 216706 246500 246500 788359 788359 48118 48118 737348 737348 118091 118091 1867511 1867511 257570 257570 82285 82285 203760 203760 1049212 1049212 127868 127868 LIBRARY AND MEMBERSHIP 74535 74535 MEALS AND ENTERTAINMENT 53762 53762 SUPPLIES 53485 53485 VEHICLES RENTAL & EXPEN 47149 47149 13640402 13640402 0 0 60910 2564 6561286 3035670 528223 1186517 5515203 2154507 3739506 3360696 28870383 36828151 39760308 44413598 3985710 4120240 6221689 3038118 3714805 4317214 13922204 11475572 X 24598517 31407506 1239587 1530520 25838104 32938026 39760308 44413598 X -171177 7271099 X X 0 1 X 1 0 X X 6 KEYSTONE SERVICE SYSTEMS INC 231915567 7 1 11337210 0 KEY HUMAN SERVICES 061259340 7 1 1936448 0 TRI-COUNTY SOCIETY FOR CHILDREN & ADULTS INC 231405636 7 1 103404 0 KEYSTONE HUMAN SERVICES INTERNATIONAL INC 251813977 7 1 30004 0 KEYSTONE AUTISM SERVICES INC 261454616 7 1 1602895 0 PARTNERSHIPS FOR PEOPLE INC 222506702 7 1 154861 0 6 15164822 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 X 1 1 PART IV, SECTION A, LINE 1: KEYSTONE HUMAN SERVICES HAS A HISTORIC AND CONTINUING RELATIONSHIP WITH ITS SUBSIDIARIES ESTABLISHED IN THE BY-LAWS OF BOTH THE KEYSTONE HUMAN SERVICES, THE PARENT, AND EACH OF THE SUBSIDIARIES. THE BY-LAWS OF KEYSTONE HUMAN SERVICES DEFINES IT AS THE PARENT OF SUBSIDIARY ORGANIZATIONS, DEFINING RESPONSIBILITIES AND OVERSIGHT OF ITS SUPPORTING RELATIONSHIP. THE BY-LAWS OF EACH SUBSIDIARY ORGANIZATION OF KEYSTONE HUMAN SERVICES SPECIFICALLY NAME KEYSTONE HUMAN SERVICES AS THE PARTICULAR SUBSIDIARY ORGANIZATION'S PARENT. PART IV, SECTION E, LINE 3A: KEYSTONE HUMAN SERVICES (KHS OR "THE ORGANIZATION") IS THE SOLE MEMBER OF KEYSTONE SERVICE SYSTEMS, INC. (KSS), KEY HUMAN SERVICES, INC. (KEY), TRI-COUNTY SOCIETY FOR CHILDREN AND ADULTS, INC. DOING BUSINESS AS KEYSTONE PARTNERSHIP (KP), KEYSTONE AUTISM SERVICES (KAS), KEYSTONE HUMAN SERVICES INTERNATIONAL (KHSI), AND PARTNERSHIPS FOR PEOPLE, INC. (PFP). THE BOARD OF KHS, IN ITS ROLE AS PARENT ORGANIZATION, APPOINTS THE BOARDS OF ALL SUBSIDIARY CORPORATIONS. PART IV, SECTION E, LINE 3B: KEYSTONE HUMAN SERVICES (KHS OR "THE ORGANIZATION") SETS POLICY AND STRATEGY, AND HAS OVERSIGHT OF ALL ENTITIES ASSOCIATED WITH THE ORGANIZATION. 107500 107500 13640403 13747903 837395 209349 0 0 758862 750236 744928 837395 3091421 4637132 102000 102000 102190 107500 413690 189716 187559 186232 209349 772856 1159284 PART II-A, LINE 2 - EXPLAIN WHY ALL 5 COLUMNS ARE NOT REQUIRED ON JULY 9, 2012, KEYSTONE HUMAN SERVICES FILED FORM 5768 ELECTION/REVOCATION OF ELECTION BY AN ELIGIBLE SECTION 501(C)(3) ORGANIZATION TO MAKE EXPENDITURES TO INFLUENCE LEGISLATION. THEREFORE, THE YEAR ENDED JUNE 30, 2013 WAS THE FIRST YEAR FOR WHICH KHS'S SECTION 501(H) ELECTION IS EFFECTIVE. 154700 154700 2072393 418012 1654381 75103 3461 71642 2893344 1728439 1164905 319663 4595 315068 3360696 BENEFICAL INTERST IN P-SHIP 181744 DEFERRED COMPENSATION INVESTMENT 4314708 INVESTMENT IN NET ASSETS OF SUBSIDIARIES 32220317 ANNUNITY 110000 OTHER 1382 36828151 DEFERRED COMPENSATION LIABILITY 4314708 OTHER LT LIABILITY 2506 4317214 X PART X, LINE 2: THE ORGANIZATION AND ITS SUBSIDIARIES QUALIFY AS A TAX-EXEMPT ORGANIZATION UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE SECTION 501(C)(3) AND THEIR INCOME IS NOT SUBJECT TO FEDERAL OR STATE INCOME TAXES. THE ORGANIZATION'S ACCOUNTING POLICY FOR EVALUATING UNCERTAIN TAX POSITIONS IS TO RECOGNIZE TAX POSITIONS IF THEY EXPECT TO BE ULTIMATELY REALIZED. THE ORGANIZATION DOES NOT BELIEVE THERE ARE ANY UNRECOGNIZED TAX BENEFITS OR LIABILITES THAT SHOULD BE RECORDED. X X X X X 1 1 0 0 0 0 0 0 0 DENNIS W FELTY FOUNDING PRESIDENT 0 429607 0 0 0 21870 0 134362 0 15967 0 601806 0 0 CHARLES J HOOKER III PRESIDENT & CEO 0 390339 0 0 0 26846 0 83465 0 9762 0 510412 0 0 ROBERT BAKER VP 0 232009 0 0 0 21938 0 19452 0 5816 0 279215 0 0 CHARLES SWEEDER VP FINANCE 0 201265 0 0 0 18450 0 15229 0 10825 0 245769 0 0 JENNIFER ALLISON VP HUMAN RESOURCES 0 212837 0 0 0 18690 0 1912 0 5910 0 239349 0 0 ANN H MOFFITT VP COMMDEVELOPMENT - THRU 6/17 0 150024 0 0 0 1780 0 665 0 2908 0 155377 0 0 ADDITIONAL INFORMATION KEYSTONE HUMAN SERVICES (KHS) SERVES AS THE PARENT ORGANIZATION TO THE FOLLOWING SUBSIDIARY ORGANIZATIONS: KEYSTONE SERVICE SYSTEMS, INC. (KSS), KEY HUMAN SERVICES INC. (KEY), KEYSTONE AUTISM SERVICES (KAS), KEYSTONE PARTNESHIP (KP), PARTNERSHIPS FOR PEOPLE INC (PFP), AND KEYSTONE HUMAN SERVICES INTERNATIONAL (KHSI). THE KHS BOARD OF DIRECTORS ESTABLISHED AN INDEPENDENT COMPENSATION COMMITTEE WHICH DETERMINES AND APPROVES THE COMPENSATION FOR ALL OFFICERS. IN DETERMINING AND APPROVING THE COMPENSATION PACKAGES, THE COMPENSATION COMMITTEE UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATIONS, AND COMPENSATION STUDY. THE COMPENSATION STUDY UTILIZED BY THE COMPENSATION COMMITTEE SPECIFICALLY ADDRESSES THE COMPENSATION FOR THE CEO OF KAS. NOTE: BENEFITS INCLUDE ACCRUED EXPENSE PURSUANT TO IRS 457B AND 457F DEFERRED COMPENSATION RETIREMENT PLANS. EXECUTIVE COMPENSATION IS ALLOCATED TO SPECIFIC PROGRAM AREAS PURSUANT TO REGULATORY AND/OR CONTRACT CAPS ON PARTICIPATION IN EXECUTIVE COMPENSATION. CHARLES & IAN HOOKER FATHER AND SON 42989 EMPLOYMENT 0 FORM 990, PART VI, SECTION A, LINE 2 CHARLES HOOKER'S SON IS EMPLOYED BY KEYSTONE HUMAN SERVICES AND IS LISTED ON SCHEDULE L. TOM FLOWERS, BOARD MEMBER, IS ALSO A BOARD MEMBER OF CENTRIC BANK. DON ENDERS, BOARD MEMBER, IS ALSO A BOARD MEMBER OF CENTRIC BANK. FORM 990, PART VI, SECTION A, LINE 6 KEYSTONE HUMAN SERVICES IS A "MEMBER" FOR ALL ENTITIES. FORM 990, PART VI, SECTION A, LINE 7A THE KEYSTONE HUMAN SERVICES BOARD APPOINTS AND/OR APPROVES ALL BOARD MEMBERS FOR ALL ENTITIES FORM 990, PART VI, SECTION A, LINE 7B REORGANIZATIONS FORM 990, PART VI, SECTION B, LINE 11B THE KHS BOARD HAS GOVERNANCE RESPONSIBILITY FOR THE ENGAGEMENT OF INDEPENDENT AUDITORS AND ACCEPTANCE OF THE AUDIT REPORT FOR KHS AND ALL SUBSIDIARIES. THE KEYSTONE HUMAN SERVICES AUDIT COMMITTEE IS ESTABLISHED TO PROVIDE MANAGEMENT OF THE AUDIT PROCESS AND THE ORGANIZATION'S SYSTEM OF INTERNAL CONTROLS. INTERNAL CONTROL IS COMPRISED OF ALL POLICIES AND PROCEDURES DESIGNED TO ASSURE THE INTEGRITY OF FINANCIAL AND OPERATIONAL ACCOUNTABILITIY. FINANCIAL ACCOUNTABILITY IS COMPRISED OF POLICIES AND PROCEDURES RELATING TO THE FINANCIAL MANAGEMENT FUNCTIONS DESIGNED TO ASSSURE THAT FINANCIAL TRANSACTIONS WHICH FLOW FROM THE SERVICES PROVIDED ARE EXECUTED AND REPORTED IN COMPLIANCE WITH ALL APPLICABLE REGULATIONS. THIS INCLUDES THAT ACCOUNTING RECORDS AND RELATED FINANCIAL REPORTS ARE ACCURATE REPRESENTATIONS OF THE EXECUTED TRANSACTIONS. IN ACCORDANCE WITH THE FOREGOING RESPONSIBILITY OF THE KHS AUDIT COMMITTEE AND IN COMPLIANCE WITH THE NEW FORM 990 GOVERNANCE IMPLICIT RECOMMENDATION, THE FORM 990 OF EACH KHS ENTITIES WILL BE REVIEWED PRIOR TO FILING. SALARY NOTE REGARDING PRESIDENT AND OFFICERS: BENEFITS INCLUDE ACCRUED EXPENSE PURSUANT TO IRS 457B AND 457F DEFERRED COMPENSATION RETIREMENT PLANS. EXECUTIVE COMPENSATION IS ALLOCATED TO SPECIFIC PROGRAM AREAS PURSUANT TO REGULATORY AND/OR CONTRACT CAPS ON PARTICIPATION IN EXECUTIVE COMPENSATION. FORM 990, PART VI, SECTION B, LINE 12C POLICY: IT IS THE POLICY OF KHS AND ALL OF ITS SUBSIDIARIES THAT NO DIRECTOR OR OFFICER SHALL PROFIT FINANCIALLY OR APPEAR TO PROFIT FINANCIALLY (BEYOND APPROVED COMPENSATION) AS A RESULT OF THEIR ASSOCIATION WITH KHS. IT IS KHS'S INTENT TO ENGAGE IN FINANCIAL TRANSACTIONS WITH DIRECTORS AND OFFICERS ONLY WHEN IT IS CLEARLY WITHIN THE BEST INTERESTS OF KHS TO DO SO OR WHEN THE TRANSACTIONS ARE BOTH NON-MATERIAL AND NON-ADVERSE TO KHS. PROCEDURES: SERVICE WITH COMPETING ORGANIZATIONS: IN ORDER TO PROTECT KHS FROM THE RISK OF UNFAIR COMPETITION OR ANTI-TRUST LIABILITIES, PAID DIRECTORS AND OFFICERS SHALL NOT SERVE AS DIRECTORS OF COMPETING ORGANIZATIONS THAT DO BUSINESS OR REGULARLY SUBMIT COMPETITIVE PROPOSALS IN AREAS WHERE KHS IS ACTIVE. IF A VOLUNTEER DIRECTOR OR OFFICER SERVES AS A DIRECTOR OF A COMPETING ORGANIZATION, THAT ROLE SHALL BE DISCLOSED TO THE VICE PRESIDENT OF CORPORATE COMPLIANCE AND THE BOARD OF DIRECTORS OF EACH OF THE ORGANIZATIONS AND THAT DIRECTOR OR OFFICER SHALL ABSTAIN FROM DISCUSSIONS AND VOTING ON ISSUES APPLICABLE TO BOTH ORGANIZATIONS. CONFIDENTIAL INFORMATION: DIRECTORS AND OFFICERS MAY HAVE ACCESS TO CONFIDENTIAL INFORMATION ABOUT PERSONS SERVED AND EMPLOYEES. DIRECTORS AND OFFICERS SHALL NOT DIVULGE ANY SUCH INFORMATION TO UNAUTHORIZED PERSONS AND SHALL NOT PUBLISH, DISCUSS, OR OTHERWISE MAKE PUBLIC OR DISCLOSE ANY SUCH CONFIDENTIAL INFORMATION. PROPRIETARY INFORMATION: INFORMATION NOT OTHERWISE MADE PUBLIC BUT DISCLOSED TO DIRECTORS AND OFFICERS ABOUT KHS'S PARTICULAR PROCESSES, SERVICES, PROPOSALS, OPERATIONS, METHODOLOGIES, PLANS, POLICIES, AND PROGRAMS IS PROPRIETARY, PRIVILEGED AND/OR CONFIDENTIAL. EXCEPT AS REQUIRED BY THEIR DUTIES, AND IS AUTHORIZED BY THE CORPORATE PRESIDENT AND/OR CHIEF EXECUTIVE OFFICER, NO CURRENT OR PAST DIRECTORS OR OFFICERS MAY DIRECTLY OR INDIRECTLY USE, DISSEMINATE, DISCLOSE, LECTURE UPON, OR PUBLISH INFORMATION CONCERNING ANY SUCH PRIVILEGED, PROPRIETARY AND/OR CONFIDENTIAL INFORMATION OR KNOWLEDGE. IN THE EVENT A DIRECTOR OR OFFICER DOES NOT FOLLOW THE PROCEDURES AS OUTLINED ABOVE THERE MAY BE TERMINATION OF THE APPOINTMENT TO THE BOARD OR OF EMPLOYEMENT. DISCLOSURE: DIRECTORS AND OFFICERS SHALL TIMELY DISCLOSE IN WRITING TO THE VICE PRESIDENT OF CORPORATE COMPLIANCE, ALL CIRCUMSTANCES THAT CONSTITUTE AN ACTUAL, POTENTIAL OR PERCEIVED CONFLICT OF INTEREST. IN ADDITION, THE COMPLIANCE DEPARTMENT WILL CIRCULATE THE ANNUAL DISCLOSURE STATEMENT. ALL BOARD MEMBERS, DIRECTORS AND OFFICERS MUST COMPLETE THE STATEMENT UPON AFFILIATION WITH THE ORGANZIATION AND ANNUALLY THEREAFTER. DISCLOSURE STATEMENTS SHALL BE COMPLETED ANNUALLY AND FORWARDED TO THE CORPORATE COMPLIANCE DEPARTMENT. FORM 990, PART VI, SECTION B, LINE 15 THIS POLICY ESTABLISHES THE INTENTION OF KEYSTONE HUMAN SERVICES (KHS) TO PROVIDE REASONABLE REMUNERATION TO THE KHS PRESIDENT AND DESIGNATED OFFICERS IN THEIR LEADERSHIP ROLES FOR A LARGE, COMPREHENSIVE NON-PROFIT CORPORATION PROVIDING HUMAN SERVICES. POLICY: IT IS THE POLICY OF KHS TO USE A COMPENSATION SYSTEM FOR THE KHS PRESIDENT AND OFFICERS THAT WILL DETERMINE THE CURRENT MARKET VALUE OF A POSITION BASED ON THE SKILLS, KNOWLEDGE AND BEHAVIORS REQUIRED OF A FULLY COMPETENT INCUMBENT. THE SYSTEM USED WILL BE AFFORDABLE, OBJECTIVE AND NON-DISCRIMINATORY IN THEORY, APPLICATION AND PRACTICE AND BE IN COMPLIANCE WITH FEDERAL IRS "INTERMEDIATE SANCTIONS" REGULATIONS. PROCEDURES: KHS WILL USE A PROFESSIONAL COMPENSATION CONSULTANT AND SYSTEM RECOMMENDED BY EXECUTIVE MANAGEMENT AND APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD OF THE DIRECTORS. THE COMMITTEE, OPERATING IN THEIR FIDUCIARY CAPACITY, WILL BALANCE EXECUTIVE PERFORMANCE, MARKET DATA, AND AFFORDABILITY INTO ANY DECISION INVOLVING EXECUTIVE REMUNERATION. TOTAL COMPENSATION ANALYSIS: COMPETITIVENESS OF THE PRESIDENT AND OFFICER'S TOTAL REMUNERATIONS (ALL ELEMENTS OF COMPENSATION AND BENEFITS) IS COMPARED TO THE MARKET MEDIAN FOR BOTH BASE SALARY AND TOTAL CASH COMPENSATION WHEN COMPARED TO SIMILAR EXECUTIVE ROLES. THE ANALYSIS PROCESS INCLUDES POSITION PRICING BY TITLE MATCH AND JOB SIZE. THE ABOVE MARKET APPROACH RESULTS WILL BE BLENDED TO DEVELOP A MARKET REFERENCE THAT REFLECTS COMPONENTS OF BOTH COMPLEXITY OF THE POSITIONS AND THE TITLE/ORGANIZATIONAL SIZE. RESPONSIBILITIES: ON A PERIODIC BASIS THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS WILL REVIEW AND APPROVE, AS APPROPRIATE, RECOMMENDED CHANGES IN REMUNERATION BASED ON MARKET ANALYSIS, EXECUTIVE PERFORMANCE AND ORGANIZATION AFFORDABILITY. AS PART OF THE PROCESS, THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS WILL REVIEW AND APPROVE, AS APPLICABLE, TOTAL COMPENSATION RANGE, WHICH WOULD INCLUDE BASE SALARY, TOTAL CASH, DEFERRED COMPENSATION, BENEFIT PLANS AND PREREQUISITES. THE BOARD SHALL SET THE POSITION LEVEL, SALARY AND BENEFIT COMPONENTS OF THE TOTAL COMPENSATION PACKAGE OF THE PRESIDENT THE PRESIDENT SHALL SET THE POSITION LEVEL, SALARY AND BENEFITS COMPONENTS OF THE TOTAL COMPENSATION PACKAGE OF OFFICERS DESIGNATED BY THE BOARD OF DIRECTORS IN THE EVENT FUNDING IS REDUCED, NOT AVAILABLE, CONTRACTS ARE LOST OR A COMPENSATION SURVEY INDICATED THE INDIVIDUAL IS RECEIVING SALARY AND BENEFITS THAT EXCEED MARKET LEVEL, THE SALARY AND BENEFITS MAY BE FROZEN OR REDUCED. EXECUTIVE SALARY AND BENEFITS WILL BE ALLOCATED AND CHARGED TO APPROPRIATE COST CENTERS AT A LEVEL THAT IS CONSISTENT WITH ALL REGULATORY AND CONTRACTUAL OBLIGATIONS AND APPLICABLE COST ALLOCATION PLANS. OFFICERS: OFFICERS ARE EXECUTIVE POSITIONS IDENTIFIED AND APPROVED BY THE KHS BOARD OF DIRECTORS. BOARD COMPENSATION COMMITTEE: A COMMITTEE CONSISTING OF BOARD MEMBERS WHO ARE NOT EMPLOYEES OF KEYSTONE HUMAN SERVICES AND NOT CLASSIFIED AS DISQUALIFIED PERSONS PURSUANT TO INTERNAL REVENUE SERVICE REGULATIONS. FORM 990, PART VI, SECTION C, LINE 19 THE COMPANY MISSION STATEMENT IS WIDELY PUBLICIZED AND READILY AVAILABLE; HOWEVER, OTHER GOVERNING DOCUMENTS INCLUDING THE CONFLICT OF INTEREST POLICY ARE NOT. THE INTERNAL REVENUE FORM 990 IS AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN CONTROLLING INTEREST IN THE NET ASSETS OF AFFILIATES 7,271,099. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEARS. KEYSTONE SERVICE SYSTEMS INC 4391 STURBRIDGE DRIVE HARRISBURG PA 17110 231915567 HUMAN SERVICES PA 501(C)(3) 509(A)(1) N/A 0 TRI-COUNTY SOCIETY FOR CHILDREN & ADULTS 4391 STURBRIDGE DRIVE HARRISBURG PA 17110 231405636 FUNDRAISING PA 501(C)(3) 509(A)(1) N/A 0 KEYSTONE HUMAN SERVICES INTERNATIONAL INC 4391 STURBRIDGE DRIVE HARRISBURG PA 17110 251813977 INTERNATIONAL HUMAN SERVICES PA 501(C)(3) 509(A)(1) N/A 0 KEYSTONE AUTISM SERVICES 4391 STURBRIDGE DRIVE HARRISBURG PA 17110 261454616 PROVIDING SERVICES TO ADULTS WITH AUTISM PA 501(C)(3) 170(B)(1)(A)(VI) N/A 0 KEY HUMAN SERVICES 1290 SILAS DEANE HIGWAY SUITE 1A WETHERSFIELD CT 06109 061259340 HUMAN SERVICES CT 501(C)(3) 509(A)(2) N/A 0 PARTNERSHIPS FOR PEOPLE INC 23 VREELAND ROAD SUITE 120 FLORHAM PARK NJ 07932 222506702 HUMAN SERVICES NJ 501(C)(3) 170(B)(1)(A)(VI) N/A 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 1 0 0