2016-11-10T10:00:05-06:00 2015-12-31 420714325 RSM US LLP 201 N HARRISON STREET SUITE 300 DAVENPORT IA 528011999 990 2015-01-01 841327507 ALLOSOURCE ALLO 7208730213 6278 S TROY CIRCLE CENTENNIAL CO 80111 OLIVIA M THOMPSON V.P./CHIEF FINANCIAL OFFICER 7208730213 2016-11-07 1 JOHN J ROMANO P00227323 5638884000 2015 2017-02-10 21:41:12Z THOMAS A CYCYOTA 6278 S TROY CIRCLE CENTENNIAL CO 80111 160379493 0 X WWW.ALLOSOURCE.ORG X 1994 IL ALLOSOURCE RESPONSIBLY PROCESSES AND DISTRIBUTES HUMAN DONATED TISSUE THAT ENHANCES AND SAVES LIVES. 8 7 604 9 0 0 1373400 2233500 144214536 157193398 80913 181700 510505 770114 146179354 160378712 7213250 7406856 0 0 38652499 43274644 0 0 0 98789561 103236714 144655310 153918214 1524044 6460498 113184439 133424987 43155531 56935581 70028908 76489406 INSPIRED BY THE GIFT OF DONATION FROM OUR COMMUNITIES, ALLOSOURCE RESPONSIBLY PROVIDES INNOVATIVE CELLULAR AND TISSUE ALLOGRAFTS TO ADVANCE PATIENT HEALING. 0 0 128440157 157963512 PROCESSING AND DISTRIBUTION: ALLOSOURCE MAXIMIZES THE MEDICAL USES OF ALL DONATED HUMAN TISSUE, ACHIEVING OUR MISSION TO HONOR THE WISHES OF DONORS AND THEIR FAMILIES. IN 2015, ALLOSOURCE FULFILLED THIS RESPONSIBILITY BY PROCESSING MORE THAN 6,000 DONORS. MUSCULOSKELETAL DONORS PROVIDE LIFE-ENHANCING TISSUE USED FOR ORTHOPEDIC, NEUROLOGICAL AND DENTAL SURGICAL PROCEDURES. ALLOSOURCE ALSO DISTRIBUTES SKIN, A LIFE-SAVING DONATED TISSUE USED IN HEALING SEVERE BURNS. ALLOSOURCE IS ACCREDITED BY THE AATB AND IS REGISTERED WITH THE FDA. 6962677 6962677 CHARITABLE CONTRIBUTION ACTIVITY: ALLOSOURCE SUPPORTS 501(C)(3) ORGANIZATIONS BY MAKING GRANTS TO PROMOTE DONATION AWARENESS AND EDUCATION. IN 2015, ALLOSOURCE SUPPORTED 6 MEMBER AND 2 NON-MEMBER ORGAN TRANSPLANT ORGANIZATIONS THROUGH CHARITABLE CONTRIBUTIONS. ADDITIONALLY, ALLOSOURCE MADE GRANTS TO 4 ORGANIZATIONS TO FURTHER THE EXPANSION AND USE OF TISSUE CONSISTENT WITH OUR MISSION. FINALLY, ALLOSOURCE SUPPORTED 69 501(C)(3) ORGANIZATIONS WITH DIRECT CONTRIBUTIONS AND MATCHING EMPLOYEE CONTRIBUTIONS. 5884512 444179 RESEARCH, EDUCATION AND TRAINING: IN 2015, WE CONTINUED OUR RESEARCH IN THE AREAS OF CELLULAR ALLOGRAFT INNOVATION AND ALTERNATIVES TO TRADITIONAL WOUND CARE THERAPIES; EXPANDING THE GIFT BY FINDING ADDITIONAL USES FOR TISSUE. ALLOSOURCE WORKED WITH THE 501(C)(3) ORGANIZATIONS THAT RECOVER TISSUE TO REDUCE TISSUE CONTAMINATION. WE ALSO PROVIDED EDUCATIONAL OPPORTUNITIES TO OUR PARTNER ORGAN PROCUREMENT ORGANIZATIONS TO HELP THEM INCREASE DONATION RATES IN THEIR RESPECTIVE COMMUNITIES. 141287346 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 1 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 155 0 1 604 1 0 0 0 0 0 0 0 0 0 0 X 8 7 0 0 0 0 1 1 0 1 0 0 0 1 1 1 1 1 1 1 1 0 IL NY X OLIVIA M THOMPSON 7208730213 6278 S TROY CIRCLE CENTENNIAL CO 80111 KEVIN CMUNT BOARD MEMBER 3.00 X 0 0 0 SUZANNE CONRAD BOARD MEMBER 3.00 X 0 0 0 THOMAS A CYCYOTA PRESIDENT & CEO 40.00 X X 639570 0 179794 SUSAN DUNN BOARD MEMBER 3.00 X 0 0 0 DEAN KAPPEL BOARD CHAIRMAN 3.00 X X 0 0 0 KEVIN MYER BOARD MEMBER 3.00 X 0 0 0 MARK SIMON BOARD VICE CHAIRMAN 3.00 X X 0 0 0 KEVIN SMITH SECRETARY/TREASURER 3.00 X X 0 0 0 OLIVIA M THOMPSON V.P./CHIEF FINANCIAL OFFICER 40.00 X 360583 0 84027 MILO S METCALF V.P. OPERATIONS 40.00 X 285773 0 27057 DEAN H ELLIOTT V.P. CORP. COMPLIANCE/GEN. 40.00 X 244628 0 61153 DONNA M SINN V.P. ENTERPRISE PERFORMANCE 40.00 X 207097 0 53388 PETER STEVENS V.P. STRATEGY, DEVELOPMENT 40.00 X 362025 0 68410 HANNIS W THOMPSON MEDICAL DIRECTOR 40.00 X 276168 0 75329 SHELLEY A ZELIN V.P. HUMAN RESOURCES 40.00 X 316291 0 58327 2692135 0 607485 66 0 1 0 LABS INC 6933-B S REVERE PARKWAY CENTENNIAL CO 80112 LABORATORY SERVICES 5160895 FEDERAL EXPRESS PO BOX 371741 PITTSBURGH PA 15250 SHIPPING SERVICES 1437360 QUICK INTERNATIONAL COURIER 17528 148TH AVENUE JAMAICA NY 11434 COURIER SERVICES 1037751 KILPATRICK TOWNSEND & STOCKTON 1100 PEACHTREE ST NE ATLANTA GA 30309 LEGAL SERVICES 555450 MTECH 675 BERING DRIVE SUITE 400 HOUSTON TX 77057 MECHANICAL CONTRACTOR 537296 17 2233500 2233500 TISSUE DIST. & PROC. 900099 157193398 157193398 157193398 181681 181681 800 781 19 19 19 INCOME(LOSS) FROM LABS, INC. 900099 385131 385131 INCOME(LOSS) FROM JRF 900099 251078 251078 MISCELLANEOUS INCOME 900099 133905 133905 770114 160378712 157963512 0 181700 7406856 7406856 1833109 1074965 758144 33373731 27742941 5630790 1855169 1712395 142774 3773582 2870191 903391 2439053 2162721 276332 1221806 610903 610903 399977 399977 1806708 1173845 632863 566347 566347 1500505 1231807 268698 184161 138121 46040 1314760 965091 349669 1135100 1079146 55954 270182 252931 17251 817502 735752 81750 3339027 2994542 344485 936032 702024 234008 TISSUE PROCESSING COSTS 77938424 77938424 COST OF DISTRIBUTION 4990731 4990731 REPAIRS & MAINTENANCE E 1928971 1446728 482243 MANAGED SERVICES & CONT 1806269 1077299 728970 3080212 2413586 666626 153918214 141287346 12630868 0 4801878 3381403 2551998 2999464 17466172 16749735 43860799 54759036 318892 603234 70468966 27563233 33447840 42905733 4824013 5209144 2301240 2552318 1176149 942462 2435458 3322458 113184439 133424987 22486600 30962933 19284000 24202198 1384931 1770450 43155531 56935581 X 70028908 76489406 70028908 76489406 113184439 133424987 6460498 0 X X 0 1 X 1 0 X 8764932 1137400 1373400 2233500 13509232 111728201 120568347 133495582 144214539 157193398 667200067 111728201 129333279 134632982 145587939 159426898 680709299 9832483 9574031 10121249 29527763 45187594 48964117 44409611 46486119 55135555 240182996 45187594 48964117 54242094 56060150 65256804 269710759 410998540 31223 5053 101643 79257 181681 398857 31223 5053 101643 79257 181681 398857 1530748 895258 -4296 510505 770114 3702329 113290172 130233590 134730329 146177701 160378693 684810485 0.60020 0.61060 0.00060 0.00060 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: MISCELLANEOUS INCOME JRF INCOME A 501C3 ENTITY ALLOSOURCE IS ONE OF TWO MEMBERS LABS INCOME A TAXABLE NON-PROFIT ALLOSOURCE IS THE SOLE MEMBER LICENSE FEES RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2084527 2084527 46181347 11126141 35055206 11659 11659 0 16296765 12370322 3926443 5894668 4055111 1839557 42905733 DEFERRED COMPENSATION 1770450 1770450 X PART X, LINE 2: THE FIN 48 FOOTNOTE PROVIDED BELOW IS FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF ALLOSOURCE AND LABS, INC. ALLOSOURCE IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3)OF THE INTERNAL REVENUE CODE (IRC) AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE IRC. LABS IS A TAXABLE NOT-FOR-PROFIT ENTITY. LABS RECORDS DEFERRED TAX ASSETS OR LIABILITIES BASED ON THE DIFFERENCE BETWEEN THE FINANCIAL STATEMENT CARRYING AMOUNTS AND INCOME TAX BASIS OF ASSETS AND LIABILITIES AND CARRY FORWARDS USING ENACTED TAX LAWS. VALUATION ALLOWANCES ARE ESTABLISHED, IF NECESSARY, TO REDUCE DEFERRED TAX ASSETS TO THE AMOUNT THAT WILL, MORE LIKELY THAN NOT, BE REALIZED. MEASUREMENTS OF CURRENT AND DEFERRED TAX ASSETS AND LIABILITIES ARE BASED ON PROVISIONS OF ENACTED TAX RATES. THE ORGANIZATION APPLIES THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE ORGANIZATION MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE-LIKELY-THAN-NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. BASED ON MANAGEMENT'S REVIEW, NO UNCERTAIN TAX POSITIONS EXISTED AS OF DECEMBER 31, 2015 AND 2014. LABS FILES INCOME TAX RETURNS IN THE U.S. FEDERAL JURISDICTION AND SIX STATE JURISDICTIONS, AND IS NO LONGER SUBJECT TO U.S. FEDERAL AND STATE INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR THE YEARS BEFORE 2012. WITH FEW EXCEPTIONS, ALLOSOURCE IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2012. THE ORGANIZATION RECOGNIZES INTEREST ACCRUED RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN GENERAL, ADMINISTRATIVE, AND OTHER EXPENSES ON THE ACCOMPANYING STATEMENTS OF OPERATIONS. DURING THE FISCAL YEARS ENDED DECEMBER 31, 2015 AND 2014, THE ORGANIZATION RECOGNIZED $0 IN INTEREST AND PENALTIES. EUROPE (INCLUDING ICELAND & GREENLAND) - ALBANIA, ANDORRA, AUSTRIA, BELGIUM 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION NORTH AMERICA - CANADA AND MEXICO, BUT NOT THE UNITED STATES 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION MIDDLE EAST AND NORTH AFRICA - ALGERIA, BAHRAIN, DJIBOUTI, EGYPT, 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION SOUTH AMERICA 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 BLUE STAR RECYCLERS PO BOX 64435 COLORADO SPRINGS CO 80962 275071916 501(C)(3) 10000 CHARITABLE CONTRIBUTION TO SUPPORT MISSION CALIFORNIA INSTITUTE OF TECHNOLOGY 1200 E CALIFORNIA BLVD PASADENA CA 91125 951643307 501(C)(3) 10250 CHARITABLE CONTRIBUTION TO SUPPORT MISSION COLORADO STATE UNIVERSITY 2002 CAMPUS DELIVERY FORT COLLINS CO 80523 846000545 STATE OF COLORADO 273829 CHARITABLE CONTRIBUTION TO SUPPORT MISSION CRANIOFACIAL CHILDREN FOUNDATION 1719 S BLVD SUITE B CHARLOTTE NC 28203 461751580 501(C)(3) 10000 CHARITABLE CONTRIBUTION TO SUPPORT MISSION DONOR ALLIANCE INC 720 S COLORADO BLVD STE 800-N DENVER CO 80246 841003771 501(C)(3) 1516400 CHARITABLE CONTRIBUTION TO SUPPORT MISSION GIFT OF HOPE ORGAN AND TISSUE DONOR NETWORK 97066 EAGLE WAY CHICAGO IL 60678 363516431 501(C)(3) 1516400 CHARITABLE CONTRIBUTION TO SUPPORT MISSION IOWA DONOR NETWORK 550 MADISON AVENUE NORTH LIBERTY IA 52317 421414092 501(C)(3) 468300 CHARITABLE CONTRIBUTION TO SUPPORT MISSION LIFECENTER ORGAN DONOR NETWORK 615 ELSINORE PLACE STE 400 CINCINNATI OH 45202 311040508 501(C)(3) 15000 CHARITABLE CONTRIBUTION TO SUPPORT DONOR AWARENESS LIFEGIFT ORGAN DONATION CENTER 2510 WESTRIDGE STREET HOUSTON TX 77054 760231238 501(C)(3) 1003500 CHARITABLE CONTRIBUTION TO SUPPORT MISSION MERCY SHIPS INTERNATIONAL PO BOX 2020 LINDALE TX 75771 752685233 501(C)(3) 134739 FAIR MARKET VALUE TISSUE DONATED TISSUE TO SUPPORT MISSION MID-AMERICA TRANSPLANT SERVICES 1110 HIGHLANDS PLAZA DR EAST STE 100 ST LOUIS MO 63110 237426306 501(C)(3) 1516400 CHARITABLE CONTRIBUTION TO SUPPORT MISSION MILE HIGH UNITED WAY INC 2505 18TH STREET DENVER CO 80211 840404235 501(C)(3) 7633 MATCHING CHARITABLE CONTRIBUTIONS TO SUPPORT MISSION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BUILDING 1111 C ROAD STENNIS SPACE CENTER MS 39529 530201509 U.S. 100000 CHARITABLE CONTRIBUTION TO SUPPORT MISSION NUVASIVE SPINE FOUNDATION 7475 LUSK BOULEVARD SAN DIEGO CA 92121 264835245 501(C)(3) 15000 CHARITABLE CONTRIBUTION TO SUPPORT MISSION THE LIMB PRESERVATION FOUNDATION 1600 BROADWAY SUITE 2400 DENVER CO 80218 841565464 501(C)(3) 26800 CHARITABLE CONTRIBUTION TO SUPPORT MISSION THE PHOENIX SOCIETY 1835 R W BERENDS DR SW GRAND RAPIDS MI 49519 232062352 501(C)(3) 30000 CHARITABLE CONTRIBUTION TO SUPPORT MISSION UPSTATE NEW YORK TRANSPLANT SERVICES 110 BROADWAY STREET BUFFALO NY 14203 161172453 501(C)(3) 674000 CHARITABLE CONTRIBUTION TO SUPPORT MISSION VANDERBILT UNIVERSITY MEDICAL CENTER DEPT 1236 PO BOX 121236 DALLAS TX 75312 620476822 501(C)(3) 27600 CHARITABLE CONTRIBUTION TO SUPPORT MISSION 18 0 PART I, LINE 2: THE VICE PRESIDENT OF RESEARCH AND DEVELOPMENT COMMUNICATES ON AN ON-GOING BASIS WITH RECIPIENTS OF GRANT FUNDS TO ENSURE THE OBJECTIVES AND GOALS OF THESE PROGRAMS ARE FULFILLED. X X 0 1 X X 0 1 0 0 0 0 0 1 0 THOMAS A CYCYOTA PRESIDENT & CEO 559340 0 77926 0 2304 0 162474 0 17320 0 819364 0 0 0 OLIVIA M THOMPSON V.P./CHIEF FINANCIAL OFFICER 322747 0 35550 0 2286 0 68075 0 15952 0 444610 0 0 0 MILO S METCALF V.P. OPERATIONS 273269 0 12324 0 180 0 25757 0 1300 0 312830 0 0 0 DEAN H ELLIOTT V.P. CORP. COMPLIANCE/GEN. 225368 0 18486 0 774 0 46749 0 14404 0 305781 0 0 0 DONNA M SINN V.P. ENTERPRISE PERFORMANCE 187178 0 17633 0 2286 0 46191 0 7197 0 260485 0 0 0 PETER STEVENS V.P. STRATEGY, DEVELOPMENT 311189 0 24648 0 26188 0 54006 0 14404 0 430435 0 0 0 HANNIS W THOMPSON MEDICAL DIRECTOR 252569 0 22411 0 1188 0 58939 0 16390 0 351497 0 0 0 SHELLEY A ZELIN V.P. HUMAN RESOURCES 297505 0 18012 0 774 0 47295 0 11032 0 374618 0 96764 0 PART I, LINE 1A PETER STEVENS RECEIVED THE FOLLOWING TAXABLE EMPLOYER-PROVIDED BENEFITS AND/OR EXPENSE REIMBURSEMENTS IN 2015: EMPLOYER PROVIDED HOUSING $21,855.66; TRAVEL AND RELOCATION $20,262.05; TAX GROSS-UPS $25,000; AND EMPLOYER PROVIDED VEHICLE $1,466.00. THESE AMOUNTS WERE TREATED AS TAXABLE COMPENSATION AND ARE INCLUDED AS REPORTABLE COMPENSATION IN THIS FORM 990. PART I, LINE 1B THE BENEFITS AND REIMBURSEMENTS DESCRIBED ABOVE AROSE OUT OF AN AGREEMENT WITH THIS INDIVIDUAL AND WERE NOT BASED UPON ANY ALLOSOURCE POLICY. THE TERMS OF THE AGREEMENT WERE REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS AND FOLLOWED BY THE ORGANIZATION. PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATED IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN IN 2015 SPONSORED BY ALLOSOURCE: THOMAS A. CYCYOTA - $138,700, DEAN H. ELLIOTT - $29,250, MILO S. METCALF - $19,500, DONNA M. SINN - $27,900, HANNIS W. THOMPSON - $35,460, OLIVIA M. THOMPSON - $45,000, PETER STEVENS - $39,000, SHELLEY A. ZELIN - $28,500. THE DOLLAR AMOUNT REPRESENTS THE CURRENT YEAR CONTRIBUTION MADE BY ALLOSOURCE ON BEHALF OF THE INDIVIDUALS TO THE PLAN IN 2015. THIS INFORMATION IS INCLUDED IN DEFERRED COMPENSATION ON THE FORM 990, PART VII AND SCHEDULE J, PART II. THE FOLLOWING INDIVIDUAL ALSO PARTICIPATED IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN IN 2015 SPONSORED BY ALLOSOURCE: SHELLEY A. ZELIN - $96,764. THE DOLLAR AMOUNT REPRESENTS THE CURRENT YEAR DISTRIBUTION MADE BY THE PLAN TO THE INDIVIDUAL. THIS INFORMATION IS INCLUDED IN REPORTABLE COMPENSATION ON THE FORM 990, PART VII AND SCHEDULE J, PART II. PART I, LINE 7 THE BOARD OF DIRECTORS ANNUALLY ESTABLISHES GOALS AND OBJECTIVES FOR THE CEO AND CFO. THESE GOALS AND OBJECTIVES ARE FOCUSED ON MEETING BOTH THE MISSION OF THE ORGANIZATION AND KEY FINANCIAL METRICS, WHICH ALLOW ALLOSOURCE TO PAY CHARITABLE CONTRIBUTIONS TO THE MEMBER 501(C)(3) ORGAN PROCUREMENT ORGANIZATIONS. POTENTIAL BONUS AWARD DISTRIBUTIONS WERE FACTORED INTO THE DETERMINATION AND ANALYSIS OF WHETHER SUCH INDIVIDUALS' COMPENSATION IS REASONABLE UNDER THE REBUTTABLE PRESUMPTION OF REASONABLENESS PROVISION IN THE TREASURY REGULATIONS. IN 2015, THESE METRICS INCLUDED GROWTH AND EXPANSION OF THE MISSION AS MEASURED BY INCREASES IN REVENUE AND NET INCOME; PROVIDING EXCEPTIONAL SERVICE TO OUR CUSTOMERS AS MEASURED BY ON-TIME DELIVERY; CREATING A CULTURE THAT EMBRACES AND DRIVES OUR MISSION AS MEASURED BY EMPLOYEE SURVEYS; AND CONTINUOUS QUALITY IMPROVEMENTS AS MEASURED BY DECREASES IN OSHA RECORDABLE RATES AND HIGHER TRAINING COMPLIANCE. UPON ATTAINING THESE PREDETERMINED METRICS, BONUSES ARE PAID ANNUALLY UPON APPROVAL BY THE BOARD OF DIRECTORS AND ARE BASED ON A PERCENTAGE OF THE CEO'S AND OFFICERS' RESPECTIVE SALARIES. A COLORADO HEALTH FACILITIES AUTHORITY REV 840752932 2012-03-21 22500874 RE-ISSUANCE OF SERIES 2010 BOND ISSUED ON DECEMBER 29, 2010 0 0 0 B COLORADO HEALTH FACILITIES AUTHORITY REV 840752932 2015-02-12 9108000 FUNDING FOR FACILITY EXPANSION 0 0 0 A 22500874 22500874 2012 1 0 1 1 B 9108000 50001 9057999 2015 0 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 1 0 1 0 0 0 1 B 0 0 1 0 0 0 0 0 1 A 1 B 1 SCHEDULE K, PART I, BOND ISSUES: AN AGREEMENT WAS PUT IN PLACE WITH THE ISSUER AT THE TIME THE BONDS WERE ISSUED WITH RESPECT TO PERMITTED USE OF BOND-FINANCED ASSETS AND REMEDIAL ACTIONS UNDER TREAS. REG. SS 1.145-2(A) AND 1.141(12) THAT WILL BE UNDERTAKEN IF THERE IS AN IMPERMISSIBLE CHANGE IN USE OF SUCH ASSETS. ADDITIONALLY, THE ALLOSOURCE BOARD OF DIRECTORS HAS ADOPTED A RESOLUTION EFFECTIVE JULY 31, 2012, ESTABLISHING PROCEDURES TO ENSURE ANY VIOLATIONS THAT CANNOT BE "SELF-CORRECTED" UNDER TREAS. REG. SS 1.141(12) WILL BE REMEDIATED THROUGH THE IRS'S VOLUNTARY CLOSING AGREEMENT PROGRAM AS DESCRIBED IN NOTICE 2008-31. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS ONE CLASS OF MEMBERSHIP. EACH CORPORATE MEMBER IS A 501(C)(3), TAX EXEMPT ORGANIZATION. EACH CORPORATE MEMBER HAS THE EXCLUSIVE POWER TO ELECT AND REMOVE, WITH OR WITHOUT CAUSE, ONE OF THE VOTING DIRECTORS OF THE CORPORATION, EXCLUDING EX-OFFICIO VOTING DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A EACH CORPORATE MEMBER HAS THE EXCLUSIVE POWER TO ELECT AND REMOVE, WITH OR WITHOUT CAUSE, ONE OF THE VOTING DIRECTORS OF THE CORPORATION, EXCLUDING EX-OFFICIO VOTING DIRECTORS. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PROVIDED TO AND REVIEWED FOR BOTH DESCRIPTION AND NUMERIC CONTENT BY KEY OFFICERS OF THE ORGANIZATION AND ALLOSOURCE'S CHIEF COMPLIANCE OFFICER. SUBSEQUENT TO THIS REVIEW THE FORM IS REVIEWED BY OUTSIDE COUNSEL. THE AUDIT COMMITTEE THEN REVIEWS IN DETAIL THE FORM 990 AND MAKES RECOMMENDATIONS TO MANAGEMENT. BASED ON THE INCORPORATION OF THE AUDIT COMMITTEE RECOMMENDATIONS INTO THE FORM 990, THE COMMITTEE ADOPTS A RESOLUTION TO RECOMMEND THE FORM 990 TO THE BOARD. THEREAFTER, THE FORM 990 IS SUBMITTED TO THE BOARD FOR THEIR REVIEW AND ACCEPTANCE. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION MONITORS THE POLICY BY REVIEWING THE ANNUAL CONFLICT OF INTEREST POLICY STATEMENTS RECEIVED FROM ITS DIRECTORS, OFFICERS AND KEY EMPLOYEES IN ACCORDANCE WITH THE ORGANIZATION'S CONFLICT OF INTEREST POLICY. IN CONNECTION WITH ANY ACTUAL OR POTENTIAL CONFLICT OF INTEREST, AN INTERESTED PERSON IMMEDIATELY MUST DISCLOSE IN WRITING OR AT A NOTICED MEETING OF THE BOARD OF DIRECTORS THE EXISTENCE AND NATURE OF THE CONFLICT AND OF HIS OR HER FINANCIAL INTEREST TO THE BOARD OF DIRECTORS. IN ALL EVENTS, SUCH WRITTEN DISCLOSURE MUST BE MADE IN SUFFICIENT TIME TO PERMIT THE BOARD, WHILE CONSIDERING THE PERTINENT ALLOSOURCE BUSINESS ACTIVITY, TO CONSIDER THE DISCLOSURE, MAKE NECESSARY OR APPROPRIATE INQUIRY, AND TAKE SUITABLE ACTION IN RESPECT TO AND IN LIGHT OF THE DISCLOSURE. DETERMINING WHETHER A CONFLICT OF INTEREST EXISTS. AFTER DISCLOSURE OF THE ACTUAL OR POTENTIAL CONFLICT OF INTEREST IN FULL DETAIL, THE INTERESTED PERSON SHALL LEAVE THE BOARD MEETING WHILE THE QUESTION OF THE EXISTENCE AND MATERIALITY OF THE DISCLOSED CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON BY THE REMAINING BOARD MEMBERS PRESENT AT THE MEETING. NO SUCH DEPARTURE BY A DISCLOSING INTERESTED PERSON SHALL DEFEAT THE EXISTENCE OF A QUORUM TO CONDUCT THE BUSINESS UNDER CONSIDERATION. THE REMAINING BOARD MEMBERS SHALL DECIDE BY MAJORITY VOTE, UNLESS OTHERWISE PRESCRIBED BY THE BYLAWS, WHETHER A CONFLICT OF INTEREST EXISTS AND, IF A CONFLICT DOES EXIST, WHETHER IT IS MATERIAL AND THEREFORE IMPERMISSIBLE CONDUCT FOR THE DISCLOSING INTERESTED PERSON. THE CHAIRPERSON OF THE BOARD OF DIRECTORS SHALL, IN HIS OR HER DISCRETION, APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE THE IMPACT OF THE DISCLOSED CONFLICT IN THE CONTEXT OF THE PROPOSED TRANSACTION, ARRANGEMENT, BUSINESS RELATIONSHIP, OR CONTRACT. AFTER EXERCISING DUE DILIGENCE IN SUCH INVESTIGATION, THE BOARD SHALL DETERMINE WHETHER ALLOSOURCE MAY ACHIEVE A MORE ADVANTAGEOUS TRANSACTION, ARRANGEMENT, BUSINESS RELATIONSHIP, OR CONTRACT WITH REASONABLE EFFORT, FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION, ARRANGEMENT BUSINESS RELATIONSHIP, OR CONTRACT MAY NOT REASONABLY BE ACHIEVED UNDER CIRCUMSTANCES WHICH WOULD AVOID THE CONFLICT OF INTEREST, THE BOARD SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION, ARRANGEMENT, BUSINESS RELATIONSHIP, OR CONTRACT IS IN ALLOSOURCE'S BEST INTEREST AND WHETHER THE RESULT IS FAIR AND REASONABLE TO ALLOSOURCE, NOTWITHSTANDING THE CONFLICT OF INTEREST. THE BOARD ALSO SHALL EVALUATE THE POSSIBLE APPEARANCE OF IMPROPRIETY AND POTENTIAL FOR ADVERSE IMPACT ON DONATION IN ITS DELIBERATIONS. THE BOARD SHALL BE GUIDED IN ITS DECISION BY THE PRINCIPLES ARTICULATED ABOVE. IF THE BOARD HAS REASONABLE CAUSE TO BELIEVE THAT AN INTERESTED PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, IT SHALL INFORM THE INTERESTED PERSON OF THE BASIS FOR THE BOARD'S BELIEF AND AFFORD THE INTERESTED PERSON AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. IF, AFTER HEARING THE RESPONSE FROM THE INTERESTED PERSON AND MAKING SUCH FURTHER INVESTIGATION AS THE BOARD MAY WISH, THE BOARD DETERMINES THAT THE INTERESTED PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, THE BOARD SHALL TAKE ANY DISCIPLINARY AND CORRECTIVE ACTION IT DEEMS APPROPRIATE, INCLUDING RECOMMENDATION TO THE CORPORATE MEMBER THAT THE INTERESTED PERSON, IF A DIRECTOR OF ALLOSOURCE, BE REMOVED OR EXPELLED BY FURTHER ACTION OF THE PERTINENT CORPORATE MEMBER PURSUANT TO THE ALLOSOURCE BYLAWS, EXPULSION OF AN INTERESTED PERSON OTHER THAN A DIRECTOR, AND PURSUIT OF A CLAIM FOR RESTITUTION OR DAMAGES, AS THE BOARD MAY DECIDE. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR SETTING COMPENSATION FOR THE CEO AND CFO BEGINS BY ESTABLISHING GOALS AND OBJECTIVES EACH YEAR. THE BOARD OF DIRECTORS EVALUATES THESE POSITIONS' PERFORMANCE TO THE GOALS AND OBJECTIVES FOR PERFORMANCE EVALUATIONS. THE CEO'S AND CFO'S PERFORMANCE, ALONG WITH BENCHMARK DATA SUPPLIED FROM A THIRD-PARTY ON COMPARABLE SALARIES AND BENEFIT PACKAGES, ARE UTILIZED TO ARRIVE AT THEIR RESPECTIVE COMPENSATION. THIS PROCESS WAS LAST COMPLETED JANUARY, 2015, AND A REASONABLENESS REVIEW WAS CONDUCTED BY THE BOARD OF DIRECTORS IN FEBRUARY 2015. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS ARE MADE AVAILABLE FOR PUBLIC INSPECTION AT THE ORGANIZATION'S OFFICE IN CENTENNIAL, COLORADO, ALONG WITH THE ORGANIZATION'S EXEMPTION APPLICATION, FORM 1023. THE CONFLICT OF INTEREST POLICY IS NOT MADE AVAILABLE FOR PUBLIC INSPECTION. THE FINANCIAL STATEMENTS ARE AUDITED BY INDEPENDENT ACCOUNTANTS. THE FINANCIAL STATEMENTS INCLUDE THE STATEMENT OF REVENUE AND EXPENSES AND BALANCE SHEET, AND ARE REPORTED ON THE ORGANIZATION'S FORM 990 IN PARTS VIII, IX, AND X, AND SCHEDULE D. THE FORM 990 AND SCHEDULES ARE MADE AVAILABLE UPON REQUEST AT THE OFFICE OF THE ORGANIZATION IN CENTENNIAL, COLORADO. FORM 990, PART XII, LINE 2C: THE OVERSIGHT AND SELECTION PROCESS HAS NOT CHANGED FROM THE PRIOR TAX YEAR. LABS INC 6933-B SOUTH REVERE PARKWAY CENTENNIAL CO 80112 260718373 MEDICAL TESTING LABORATORY DE ALLOSOURCE C 807004 9198439 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 LABS INC M 5336787 FAIR MARKET VALUE