2015-11-13T17:12:34-06:00 2014-12-31 420714325 RSM US LLP 201 N HARRISON STREET SUITE 300 DAVENPORT IA 528011999 990 2014-01-01 841327507 ALLOSOURCE ALLO 7208730213 6278 S TROY CIRCLE CENTENNIAL CO 80111 OLIVIA M THOMPSON VP/CHIEF FINANCIAL OFFICER 7208730213 2015-11-03 1 JOHN J ROMANO P00227323 5638884000 2014 2016-03-07 17:11:31Z THOMAS A CYCYOTA 6278 S TROY CIRCLE CENTENNIAL CO 80111 146180198 0 X WWW.ALLOSOURCE.ORG X 1994 IL ALLOSOURCE RESPONSIBLY PROCESSES AND DISTRIBUTES HUMAN DONATED TISSUE THAT ENHANCES AND SAVES LIVES. 8 7 538 1 0 0 1137400 1373400 133495582 144214536 97817 80913 -4296 510505 134726503 146179354 6706597 7213250 0 0 36650353 38652499 0 0 0 85244546 98789561 128601496 144655310 6125007 1524044 112482172 113184439 43977308 43155531 68504864 70028908 INSPIRED BY THE GIFT OF DONATION FROM OUR COMMUNITIES, ALLOSOURCE RESPONSIBLY PROVIDES INNOVATIVE CELLULAR AND TISSUE ALLOGRAFTS TO ADVANCE PATIENT HEALING. 0 0 121392994 144725041 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 2014, ALLOSOURCE FULFILLED THIS RESPONSIBILITY BY PROCESSING MORE THAN 7,000 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. 7213250 6700023 CHARITABLE CONTRIBUTION ACTIVITY: ALLOSOURCE SUPPORTS 501(C)(3) ORGANIZATIONS BY MAKING GRANTS TO PROMOTE DONATION AWARENESS AND EDUCATION. IN 2014, ALLOSOURCE SUPPORTED 6 MEMBER AND 9 NON-MEMBER ORGAN TRANSPLANT ORGANIZATIONS THROUGH CHARITABLE CONTRIBUTIONS. ADDITIONALLY, ALLOSOURCE MADE GRANTS TO 3 ORGANIZATIONS TO FURTHER THE EXPANSION AND USE OF TISSUE CONSISTENT WITH OUR MISSION. FINALLY, ALLOSOURCE SUPPORTED 49 501(C)(3) ORGANIZATIONS WITH DIRECT CONTRIBUTIONS AND MATCHING EMPLOYEE CONTRIBUTIONS. 3997988 513227 RESEARCH, EDUCATION AND TRAINING: IN 2014, 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. 132604232 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 1 142 0 1 538 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 CA 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 CHAIRWOMAN 3.00 X X 0 0 0 THOMAS A CYCYOTA PRESIDENT & CEO 40.00 X X 791625 0 118995 DEAN KAPPEL BOARD VICE CHAIRMAN 3.00 X X 0 0 0 MARK SIMON BOARD MEMBER 3.00 X 0 0 0 KEVIN SMITH SECRETARY/TREASURER 3.00 X X 0 0 0 SUSAN DUNN BOARD MEMBER 3.00 X 0 0 0 KEVIN MYER BOARD MEMBER 3.00 X 0 0 0 OLIVIA M THOMPSON V.P./CHIEF FINANCIAL OFFICER 40.00 X 403113 0 79388 DEAN H ELLIOTT V.P. CORP. COMPLIANCE/GEN. 40.00 X 233343 0 61148 ELIZABETH A REISH FORMER V.P. OPERATIONS 40.00 X 257213 0 6853 MILO S METCALF V.P. OPERATIONS 40.00 X 249823 0 0 JAMES T CZEPIEL V.P. STRATEGIC DEVELOPMENT 32.00 X 227342 0 58381 HANNIS W THOMPSON MEDICAL DIRECTOR 40.00 X 274321 0 72607 SHELLEY ZELIN PRESIDENT, HUMAN RESOURCES 40.00 X 221284 0 57398 PETER STEVENS V.P. STRATEGY, DEVELOPMENT AND GROWTH, RD 40.00 X 324126 0 38354 DONNA M SINN V.P. ENTERPRISE PERFORMANCE EXCELLENCE 40.00 X 224265 0 53496 3206455 0 546620 69 0 1 0 LABS INC 6933-B S REVERE PARKWAY CENTENNIAL CO 80112 LABORATORY SERVICES 4283425 FEDERAL EXPRESS PO BOX 371741 PITTSBURGH PA 15250 SHIPPING SERVICES 1296120 WUXI APPTEC 24681 NETWORK PLACE CHICAGO IL 60673 TESTING LABORATORY 963529 QUICK INTERNATIONAL COURIER 17528 148TH AVENUE JAMAICA NY 11434 COURIER SERVICES 921377 REGLERA 26248 NETWORK PLACE CHICAGO IL 60673 REGULATORY COMPLIANCE 810559 27 1373400 1373400 TISSUE DIST. & PROC. 900099 144214536 144214536 144214536 79257 79257 2500 844 1656 1656 1656 MISCELLANEOUS INCOME 900099 267023 267023 INCOME(LOSS) FROM JRF 900099 229708 229708 INCOME(LOSS) FROM LABS, INC. 900099 13774 13774 510505 146179354 144725041 0 80913 7213250 7213250 1994570 1495928 498642 29600514 24386342 5214172 2044207 1733063 311144 2804567 2452548 352019 2208641 1944598 264043 853178 341271 511907 90715 90715 2518516 2260439 258077 373844 373844 1296394 1077775 218619 135495 101621 33874 1191810 877390 314420 1259954 1196882 63072 213623 201487 12136 864360 864360 3114281 2708208 406073 1125075 843806 281269 TISSUE PROCESSING COSTS 75678761 75678761 COST OF DISTRIBUTION 5064727 5064727 REPAIRS & MAINTENANCE E 1648172 1236129 412043 MANAGED SERVICES & CONT 1357732 311563 1046169 2002924 1104600 898324 144655310 132604232 12051078 0 7635621 4801878 3001821 2551998 13051747 17466172 44654981 43860799 335385 318892 58024411 24576571 32750361 33447840 4810239 4824013 2071532 2301240 1409836 1176149 2760649 2435458 112482172 113184439 21694843 22486600 21170000 19284000 1112465 1384931 43977308 43155531 X 68504864 70028908 68504864 70028908 112482172 113184439 1524044 0 X X 0 1 X 1 0 X 8764932 1137400 1373400 11275732 99115075 111728201 120568347 133495582 144214539 609121744 99115075 111728201 129333279 134632982 145587939 620397476 0 40648365 45187594 48964118 51757389 51525388 238082854 40648365 45187594 48964118 51757389 51525388 238082854 382314622 164283 31223 5053 101643 79257 381459 164283 31223 5053 101643 79257 381459 2407666 1530748 895258 -4296 510505 5339881 101687024 113290172 130233590 134730329 146177701 626118816 0.61060 0.59720 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 LEGAL SETTLEMENT COLUMN B 2010 ONLY LICENSE FEES RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2081032 2081032 36684720 9677072 27007648 11659 10687 972 14441288 11033815 3407473 4805712 3854997 950715 33447840 DEFERRED COMPENSATION 1384931 1384931 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, 2014 AND 2013. 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 2011. 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 2011. 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, 2014 AND 2013, THE ORGANIZATION RECOGNIZED $0 IN INTEREST AND PENALTIES. EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION 1939 NORTH AMERICA 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION 2322 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION SOUTH AMERICA 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION SOUTH ASIA 0 0 PROGRAM SERVICES TISSUE DISTRIBUTION 0 0 0 0 0 0 4261 0 4261 0 0 0 0 0 1 1 DONOR ALLIANCE INC 720 S COLORADO BLVD STE 800-N DENVER CO 80246 841003771 501(C)(3) 1433822 CHARITABLE CONTRIBUTION TO SUPPORT MISSION MID-AMERICA TRANSPLANT SERVICES 1110 HIGHLANDS PLAZA DR EAST STE 100 ST LOUIS MO 63110 237426306 501(C)(3) 1433822 CHARITABLE CONTRIBUTION TO SUPPORT MISSION GIFT OF HOPE ORGAN AND TISSUE DONOR NETWORK 97066 EAGLE WAY CHICAGO IL 60678 363516431 501(C)(3) 1433822 CHARITABLE CONTRIBUTION TO SUPPORT MISSION LIFEGIFT ORGAN DONATION CENTER 2510 WESTRIDGE STREET HOUSTON TX 77054 760231238 501(C)(3) 948853 CHARITABLE CONTRIBUTION TO SUPPORT MISSION UPSTATE NEW YORK TRANSPLANT SERVICES 110 BROADWAY STREET BUFFALO NY 14203 161172453 501(C)(3) 632568 CHARITABLE CONTRIBUTION TO SUPPORT MISSION IOWA DONOR NETWORK 550 MADISON AVENUE NORTH LIBERTY IA 52317 421414092 501(C)(3) 442798 CHARITABLE CONTRIBUTION TO SUPPORT MISSION THE LIMB PRESERVATION FOUNDATION 1600 BROADWAY SUITE 2400 DENVER CO 80218 841565464 501(C)(3) 225205 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 MILE HIGH UNITED WAY INC 2505 18TH STREET DENVER CO 80211 840404235 501(C)(3) 24799 MATCHING CHARITABLE CONTRIBUTIONS TO SUPPORT MISSION DONATE LIFE AMERICA 701 E BYRD STREET 16TH FLOOR RICHMOND VA 23219 541626038 501(C)(3) 10000 CHARITABLE CONTRIBUTION TO SUPPORT DONOR AWARENESS LIFECENTER ORGAN DONOR NETWORK 615 ELSINORE PLACE STE 400 CINCINNATI OH 45202 311040508 501(C)(3) 10000 CHARITABLE CONTRIBUTION TO SUPPORT DONOR AWARENESS NUVASIVE SPINE FOUNDATION 7475 LUSK BOULEVARD SAN DIEGO CA 92121 264835245 501(C)(3) 15000 CHARITABLE CONTRIBUTION TO SUPPORT MISSION THE AMERICAN HEART ASSOCIATION 1280 S PARKER ROAD DENVER CO 80231 135613797 501(C)(3) 5000 CHARITABLE CONTRIBUTION TO SUPPORT MISSION INTERMOUNTAIN DONOR SERVICES 230 S 500 EAST SUITE 490 SALT LAKE UT 84102 870447660 501(C)(3) 7500 CHARITABLE CONTRIBUTION TO SUPPORT DONOR AWARENESS 14 0 PART I, LINE 2: THE VICE PRESIDENT OF STRATEGY, DEVELOPMENT AND GROWTH, R & D 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 X 1 1 0 0 0 0 0 1 0 THOMAS A CYCYOTA PRESIDENT & CEO 656342 0 134479 0 804 0 99736 0 19259 0 910620 0 78795 0 OLIVIA M THOMPSON V.P./CHIEF FINANCIAL OFFICER 323231 0 57925 0 21957 0 63784 0 15604 0 482501 0 41250 0 DEAN H ELLIOTT V.P. CORP. COMPLIANCE/GEN. 188409 0 29520 0 15414 0 41897 0 19251 0 294491 0 0 0 ELIZABETH A REISH FORMER V.P. OPERATIONS 28092 0 31242 0 197879 0 5613 0 1240 0 264066 0 0 0 MILO S METCALF V.P. OPERATIONS 140000 0 0 0 109823 0 0 0 0 0 249823 0 0 0 JAMES T CZEPIEL V.P. STRATEGIC DEVELOPMENT 201337 0 25386 0 619 0 45763 0 12618 0 285723 0 0 0 HANNIS W THOMPSON MEDICAL DIRECTOR 234363 0 38770 0 1188 0 57696 0 14911 0 346928 0 0 0 SHELLEY ZELIN PRESIDENT, HUMAN RESOURCES 190990 0 29520 0 774 0 43893 0 13505 0 278682 0 0 0 PETER STEVENS V.P. STRATEGY, DEVELOPMENT AND GROWT 253302 0 20500 0 50324 0 25250 0 13104 0 362480 0 0 0 DONNA M SINN V.P. ENTERPRISE PERFORMANCE EXCELLEN 185305 0 29520 0 9440 0 46748 0 6748 0 277761 0 0 0 PART I, LINE 1A PETER STEVENS RECEIVED THE FOLLOWING TAXABLE EMPLOYER-PROVIDED BENEFITS AND/OR EXPENSE REIMBURSEMENTS IN 2014: EMPLOYER PROVIDED HOUSING $24,790.36; TRAVEL AND RELOCATION $21,405.83; TAX GROSS-UPS $1,473.77; 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 A SPECIFIC AGREEMENT WITH A SPECIFIC INDIVIDUAL AND WERE NOT BASED UPON ANY ALLOSOURCE POLICY. THE TERMS OF THE AGREEMENT WERE FOLLOWED. IN ADDITION, ALLOSOURCE GENERALLY FOLLOWS THE INTERNAL REVENUE SERVICE'S ACCOUNTABLE PLAN RULES WITH RESPECT TO EMPLOYEE EXPENSE REIMBURSEMENTS. PART I, LINES 4A-B PART I, LINE 4A: THE FOLLOWING INDIVIDUAL RECEIVED SEVERANCE PAYMENTS FROM ALLOSOURCE: ELIZABETH A. REISH - $190,500. THIS INFORMATION IS INCLUDED IN REPORTABLE COMPENSATION ON THE FORM 990, PART VII AND SCHEDULE J, PART II. THE FOLLOWING INDIVIDUALS PARTICIPATED IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN IN 2014 SPONSORED BY ALLOSOURCE: THOMAS A. CYCYOTA - $78,795, JAMES T. CZEPIEL - $37,872, DEAN H. ELLIOTT - $27,000, DONNA M. SINN - $27,000, HANNIS W. THOMPSON - $35,460, OLIVIA M. THOMPSON - $42,488, PETER STEVENS - $18,750, SHELLEY A. ZELIN - $27,000. THE DOLLAR AMOUNT REPRESENTS THE CURRENT YEAR CONTRIBUTION MADE BY ALLOSOURCE ON BEHALF OF THE INDIVIDUALS TO THE PLAN IN 2014. THIS INFORMATION IS INCLUDED IN DEFERRED COMPENSATION ON THE FORM 990, PART VII AND SCHEDULE J, PART II. THE FOLLOWING INDIVIDUALS ALSO PARTICIPATED IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN IN 2014 SPONSORED BY ALLOSOURCE: THOMAS A. CYCYOTA - $78,795 AND OLIVIA M. THOMPSON - $41,250. THE DOLLAR AMOUNT REPRESENTS THE CURRENT YEAR DISTRIBUTION MADE BY THE PLAN TO THE INDIVIDUALS. 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 2014, THESE METRICS INCLUDED GROWTH AND EXPANSION OF THE MISSION AS MEASURED BY INCREASES IN REVENUE AND NET INCOME; PROVIDING EXCEPTIONAL SERVICE TO OUR MEMBER 501(C)(3) ORGAN PROCUREMENT ORGANIZATIONS, EMPLOYEES AND CUSTOMERS AS MEASURED BY SURVEYS; AND CONTINUOUS QUALITY IMPROVEMENTS AS MEASURED BY DECREASES IN NON-CONFORMANCES (NCRS) AND OSHA RECORDABLE RATES. 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 A 22500874 22500874 2012 1 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 1 0 1 0 0 0 1 A 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. ALLOSOURCE INTERNATIONAL INC 6278 S TROY CIRCLE CENTENNIAL CO 80111 205932892 INTERNATIONAL TISSUE BANK DEVELOPMENT DE 501(C)(3) 9 ALLOSOURCE 1 LABS INC 6933-B SOUTH REVERE PARKWAY CENTENNIAL CO 80112 260718373 MEDICAL TESTING LABORATORY DE ALLOSOURCE C 507582 8415408 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 4389179 FAIR MARKET VALUE