2018-05-11T12:11:16-05:00 2017-06-30 232108173 RKL LLP 1330 BROADCASTING ROAD PO BOX 7008 WYOMISSING PA 196106008 990 2016-07-01 251847902 KEYSTONE HUMAN SERVICES KEYS 7172327509 124 PINE STREET HARRISBURG PA 17101 CHARLES S SWEEDER VP OF FINANCE 7172327509 2018-05-10 1 RUTHANN J WOLL P00647342 6103761595 2018-05-10 2016 2022-09-23 18:48:47Z CHARLES J HOOKER III 124 PINE STREET HARRISBURG PA 17101 11947123 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. 11 11 99 11 0 0 550 84528 11789448 11708204 0 -2042 177350 154391 11967348 11945081 0 0 0 0 7207598 7192702 0 0 0 4797116 4705851 12004714 11898553 -37366 46528 32663945 39760308 7768789 13922204 24895156 25838104 X 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. 0 0 11898553 11862595 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, 2017:IN THE COMMONWEALTH OF PENNSYLVANIA, KSS OPERATES INTELLECTUAL DISABILITIES SERVICES THROUGH WHICH INDIVIDUALS RECEIVED SERVICES IN A VARIETY OF SETTINGS RANGING FROM THEIR OWN HOMES TO KSS OWNED HOMES, FAMILY-PROVIDER HOMES, COMMUNITY SUPPORT, AND ADULT DAY CENTERS. APPROXIMATELY 1,015 INDIVIDUALS RECEIVE SERVICES THROUGH THESE PROGRAMS. KSS ALSO OPERATES ADULT MENTAL HEALTH SERVICES WHICH ARE OFFERED IN A VARIETY OF SETTINGS RANGING FROM THE HOMES OF THE INDIVIDUALS SERVED TO KSS OWNED HOMES, THE COMMUNITY, EMPLOYMENT CENTERS, PSYCHIATRIC REHABILITATION PROGRAMS, AND DROP-IN CENTERS. APPROXIMATELY 1,057 INDIVIDUALS RECEIVE SERVICES THROUGH THESE PROGRAMS. IN THE STATE OF CONNECTICUT, KEY SUPPORTS INDIVIDUALS WITH INTELLECTUAL DISABILITIES IN RESIDENTIAL SERVICES. IN ADDITION, KEY PROVIDES A SELECTION OF SERVICES AND SUPPORTS, SUCH AS COMMUNITY LIVING ARRANGEMENTS (GROUP HOMES), INDIVIDUAL SUPPORTS, NURSING SERVICES, AND BIRTH TO THREE. IN THE INDIVIDUAL AND FAMILY SUPPORT SERVICES (IFS) INDIVIDUALS RECEIVED SUPPORT SERVICES IN THE AREAS OF AUTISM, COMMUNITY TRAINING HOMES, INDIVIDUALIZED DAY SUPPORT, AND INDIVIDUALIZED HOME SUPPORT.KP IS THE FUNDRAISING ORGANIZATION FOR KEYSTONE. FUNDS WERE RAISED ON BEHALF OF ALL OF KEYSTONE'S PROGRAMS. SPECIFIC EFFORTS ARE DIRECTED TOWARDS THOSE PROGRAMS THAT ARE SIGNIFICANTLY DEPENDENT UPON PRIVATE DONATIONS TO FUND OPERATIONS. KHSI IS DEDICATED TO ADVANCING THE MISSION AND VISION OF KHS INTERNATIONALLY. KHSI HAS AN INTERNATIONAL SUBSIDIARY, KEYSTONE HUMAN SERVICES INTERNATIONAL MOLDOVA ASSOCIATION (KHSIMA) LOCATED IN THE REPUBLIC OF MOLDOVA. 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, 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 149 ADULTS THROUGH THE ADULT COMMUNITY AUTISM PROGRAM (ACAP) DURING THE 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. 11898553 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 42 0 1 99 1 0 0 0 0 0 0 0 0 0 0 X 11 11 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 124 PINE STREET HARRISBURG PA 17101 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 JAY LAYMAN DIRECTOR 2.00 0.00 X 0 0 0 TOM FLOWERS DIRECTOR 2.00 0.00 X 0 0 0 TODD SHAMASH 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 PAT HOTTENSTEIN DIRECTOR 2.00 0.00 X 0 0 0 DENNIS W FELTY FOUNDING PRESIDENT 5.00 45.00 X 0 494847 150285 CHARLES J HOOKER III PRESIDENT & CEO 5.00 45.00 X 0 369529 93183 ROBERT BAKER VP OPERATIONS 3.00 47.00 X 0 251551 24413 CHARLES SWEEDER VP FINANCE 3.00 47.00 X 0 218165 26054 BEVERLY J BUFORD CIO 3.00 47.00 X 0 205740 8944 JENNIFER ALLISON VP HUMAN RESOURCES 3.00 47.00 X 0 231238 8060 ANN H MOFFITT VP COMMUNITY RELATIONS 3.00 47.00 X 0 140380 6812 KRISTINE KOONTZ VP, QUALITY & CORPORATE INTEGRITY 3.00 47.00 X 0 118832 8265 MARY BETH O'NEILL CEO, KEY 0.00 38.00 X 0 109146 9624 GERALD CASSIDY APPLICATIONS DIRECTOR 38.00 0.00 X 165995 0 11452 JAMES LAGRAFFE ID SERVICES DIRECT (THRU 6/17) 38.00 0.00 X 169935 0 12442 ELIZABETH NEUVILLE ED, THE KEYSTONE INSTITUTE 38.00 0.00 X 140535 0 1426 GENEVIEVE FITZGIBBON DEPUTY DIRECTOR 38.00 0.00 X 122905 0 1254 CRAIG GIRSCH INFRASTRUCTURE DIRECTOR 38.00 0.00 X 118029 0 7094 MARK OLSEN SYSTEMS ANALYST 38.00 0.00 X 117408 0 12074 ANDREW S ERKSINE JR FINANCE DIRECTOR 38.00 0.00 X 111235 0 7027 ROBYN JOPPY FORMER COMPLIANCE OFFICER 0.00 0.00 X 0 173959 2102 946042 2313387 390511 7 1 1 0 NAVISITE INC PO BOX 10138 UNIONDALE NY 11555 TECHNOLOGY SERVICES 356826 KPMG LLP PO BOX 120522 DALLAS TX 75312 AUDIT SERVICES 257000 MCNEES WALLACE & NURICK 100 PINE STREET HARRISBURG PA 17108 LEGAL SERVICES 235200 APPALACHIA TECHNOLOGIES LLC 5012 LENKER STREET MECHANICSBURG PA 17050 TECHNOLOGY SERVICES 157300 STREAMLINE HEALTHCARE SOLUTIONS LLC 510 EAST BUTLER COURT KALAMAZOO MI 49007 TECHNOLOGY SERVICES 141800 6 84528 84528 MANAGEMENT SERVICES 561000 11708204 11708204 11708204 2042 -2042 -2042 -2042 RENTAL INCOME 531120 154391 154391 154391 11945081 11862595 0 -2042 5740778 5740778 398436 398436 685995 685995 367493 367493 136997 136997 280474 280474 430954 430954 104564 104564 846393 846393 67234 67234 1384697 1384697 245974 245974 95990 95990 251462 251462 370437 370437 125354 125354 LIBRARY AND MEMBERSHIP 210465 210465 SUPPLIES 68127 68127 VEHICLES RENTAL & EXPEN 44746 44746 MEALS AND ENTERTAINMENT 41983 41983 11898553 11898553 0 0 118227 60910 978206 6561286 562084 528223 4945340 1205834 3758652 3739506 27246776 28870383 32663945 39760308 697512 3985710 158334 6221689 0 0 6912943 3714805 7768789 13922204 X 23834527 24598517 1060629 1239587 24895156 25838104 32663945 39760308 X 46528 896420 X X 0 1 X 1 0 X X 5 KEYSTONE SERVICE SYSTEMS INC 231915567 7 1 9591631 0 KEY HUMAN SERVICES 061259340 7 1 1867738 0 TRI-COUNTY SOCIETY FOR CHILDREN & ADULTS INC 231405636 7 1 53230 0 KEYSTONE HUMAN SERVICES INTERNATIONAL INC 251813977 7 1 44004 0 KEYSTONE AUTISM SERVICES INCQ 261454616 7 1 1488418 0 5 13045021 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 ITSELF 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), AND KEYSTONE HUMAN SERVICES INTERNATIONAL (KHSI). 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. 102190 102190 11796363 11898553 744928 186232 0 0 729007 758862 750236 744928 2983033 4474550 102000 102000 102000 102190 408190 182252 189716 187559 186232 745759 1118639 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 334946 1737447 31346 1843 29503 1420859 865434 555425 1266042 3611 1262431 3739506 BENEFICAL INTERST IN P-SHIP 92324 DEFERRED COMPENSATION INVESTMENT 3827974 INVESTMENT IN NET ASSETS OF SUBSIDIARIES 24950085 28870383 DEFERRED COMPENSATION LIABILITY 3714805 3714805 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 465806 0 0 0 29041 0 134319 0 15966 0 645132 0 0 CHARLES J HOOKER III PRESIDENT & CEO 0 341839 0 0 0 27690 0 83421 0 9762 0 462712 0 0 ROBERT BAKER VP OPERATIONS 0 230727 0 0 0 20824 0 18597 0 5816 0 275964 0 0 CHARLES SWEEDER VP FINANCE 0 199715 0 0 0 18450 0 15229 0 10825 0 244219 0 0 BEVERLY J BUFORD CIO 0 187050 0 0 0 18690 0 1888 0 7056 0 214684 0 0 JENNIFER ALLISON VP HUMAN RESOURCES 0 212787 0 0 0 18451 0 2150 0 5910 0 239298 0 0 GERALD CASSIDY APPLICATIONS DIRECTOR 165305 0 0 0 690 0 1690 0 9762 0 177447 0 0 0 JAMES LAGRAFFE ID SERVICES DIRECT (THRU 6/17) 165204 0 0 0 4731 0 1617 0 10825 0 182377 0 0 0 ROBYN JOPPY FORMER COMPLIANCE OFFICER 0 161546 0 0 0 12413 0 511 0 1591 0 176061 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), 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 42773 EMPLOYMENT 0 FORM 990, PART VI, SECTION A, LINE 2 VP CHARLES HOOKER'S SON IS EMPLOYED BY KEYSTONE HUMAN SERVICES AND IS LISTED ON SCHEDULE L. 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 QUALITY AND CORPORATE INTEGRITY 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 QUALITY AND CORPORATE INTEGRITY, 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 94,430. NET ASSET TRANSFER TO AFFILIATE 1,329,681. PRIOR PERIOD ADJUSTMENT -527,691. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEARS. KEYSTONE SERVICE SYSTEMS INC 124 PINE STREET HARRISBURG PA 17101 231915567 HUMAN SERVICES PA 501(C)(3) 509(A)(1) N/A 0 TRI-COUNTY SOCIETY FOR CHILDREN & ADULTS 124 PINE STREET HARRISBURG PA 17101 231405636 FUNDRAISING PA 501(C)(3) 509(A)(1) N/A 0 KEYSTONE HUMAN SERVICES INTERNATIONAL INC 124 PINE STREET HARRISBURG PA 17101 251813977 INTERNATIONAL HUMAN SERVICES PA 501(C)(3) 509(A)(1) N/A 0 KEYSTONE AUTISM SERVICES 124 PINE STREET HARRISBURG PA 17101 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 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 1 0 0