2015-05-15T10:11:36-05:00 2014-06-30 Grant Thornton LLP 2010 CORPORATE RIDGE SUITE 400 MCLEAN VA 22102 990 2013-07-01 131656692 United States Pharmacopeial Convention % JAMES P THOMPSON UNIT 3018810666 12601 Twinbrook Parkway Suite Rockville MD 20852 Richard Wailes Chief Operating Officer 3018810666 2015-05-15 true Mary Torretta P00847851 3018810666 2013 2016-04-25 22:37:26Z Ronald T Piervincenzi 12601 Twinbrook Parkway Rockville MD 20852 245426151 false X www.usp.org X 1820 MD TO IMPROVE THE HEALTH OF PEOPLE AROUND THE WORLD THROUGH WORLD THROUGH PUBLIC STANDARDS AND RELATED PROGRAMS THAT HELP ENSURE THE QUALITY, SAFETY, AND BENEFIT OF MEDICINES AND FOODS. 14 14 676 895 0 0 10666763 9085654 165964538 184631934 3996659 8673831 3446731 818288 184074691 203209707 258300 213586 0 0 86432937 96737005 0 0 0 90704065 99918903 177395302 196869494 6679389 6340213 370131138 365933521 174080212 161394929 196050926 204538592 X TO IMPROVE THE HEALTH OF PEOPLE AROUND THE WORLD THROUGH PUBLIC STANDARDS AND RELATED PROGRAMS THAT HELP ENSURE THE QUALITY, SAFETY, AND BENEFIT OF MEDICINES AND FOODS. false false 129058585 181291626 SEE SCHEDULE O 2836452 2728464 SEE SCHEDULE O 9927583 213586 611844 SEE SCHEDULE O 141822620 true true false true false false false false false false true false false true false true false true false true true true false false false false false true false true true false false false false false false false false false false true false false false true true true true false false true X 57 0 true 676 true false true IN CH BR ET GH false false false false false false false false X 14 14 false false false false true true true true true false false true true true true true true true true false MD X JAMES P THOMPSON 3012306348 12601 TWINBROOK PARKWAY Rockville MD 20852 X Timothy R FransonBS PharmMD President 4.0 X 0 0 0 Rene H Bravo MDFAAP Past President 4.0 X 0 0 0 John E Courtney PhD Treasurer 4.0 X 0 0 0 Michael D Maves MD Med. Sciences Trustee/SVP Dev. 38.0 X 119010 0 5596 Robert M Russell MD Medical Sciences Trustee 4.0 X 0 0 0 Duane M KirkingPharmDPhD Chair, USP Board of Trustees 4.0 X 0 0 0 Marilyn K Speedie PHD Pharmaceutical Trustee 4.0 X 0 0 0 Carolyn H AsburyScMPHPhD Public Trustee 4.0 X 0 0 0 Robert L Buchanan PhD At-Large Trustee 4.0 X 0 0 0 Thomas MenighanBSPharmMBA At-Large Trustee 4.0 X 0 0 0 Jeffrey L Sturchio PhD At-Large Trustee 4.0 X 0 0 0 Thomas R TempleBSPharmMS At-Large Trustee 4.0 X 0 0 0 Gail R Wilensky PhD At-Large Trustee 4.0 X 0 0 0 Kiran Muzandar-Shaw At-Large Trustee 4.0 X Stephen P Spielberg MD PhD Medical Sciences Trustee 4.0 X Roger L Williams PhD Outgoing CEO 38.0 X 726002 0 74444 Susan S De Mars EVP, CHIEF LEGAL OFFICER 38.0 X 482147 0 65052 Brian Hendrix Outgoing Chief Op. Officer 38.0 X 388061 0 48472 Ronald T Piervincenzi Incoming CEO 38.0 X Vijayaraghavan Srinivasan EVP, CHIEF SCIENCE OFFICER 38.0 X 732617 0 61148 Scott Henderson Sr.VP Info and Services 38.0 X 324880 0 49325 Angela Long Sr.VP Global Alliance & Org 38.0 X 314713 0 48051 Susan Bach VP HUMAN RESOURCES 38.0 X 226779 0 28146 Richard Wailes Incoming CHIEF OP. OFFICER 38.0 X 384048 0 47042 James Thompson VP Fin, Accounting & Treasury 38.0 X 220502 0 38078 Hermes van der Lee SVP GLOBAL LAB OPS 38.0 X 247862 25497 Anthony Destefano VP General Chapters 38.0 X 492879 28990 Shawn Dressman VP Chemical Medicines 38.0 X 171087 25817 Stamatia Calomeris DIRECTOR, COMM & DESIGN 38.0 X 372093 0 33487 Barbara Hubert VP SALES & MARKETING 38.0 X 272250 0 32431 Kevin Hool VP RESEARCH & INNOVATION 38.0 X 311413 0 47978 Todd Cecil VP, CHEMICAL MEDICINES 38.0 X 270158 0 43085 Matthew Van Hook VP GLOBAL LEGAL AFFAIRS 38.0 X 255706 0 31095 6312207 0 733734 309 false true false Berkeley Research Group LLC 2200 Powell St Suite 1200 EMERYVILLE CA 94608 Consulting 541073 Covington Burling LLP 1201 Pennsylvania Ave NW WASHINGTON DC 20004 Legal 491288 AAPS Associates LLP 40 Nagog Park 105 ACTON MA 01720 IT Consulting 407910 Analytical Research Laboratories 10810 72nd St Suite 206 LARGO FL 33777 Collab Testing 391726 Grant Thornton LLP 33960 Treasury Center CHICAGO IL 60694 Audit & Tax 280232 18 7592507 1493147 1493147 9085654 COMPENDIAL ACTIVITIES 511190 181291626 181291626 ALLIED COMPENDIAL ACTIVITIES 900099 2728464 2728464 NON-COMPENDIAL ACTIVITIES 900099 611844 611844 184631934 2968085 2968085 0 140874 140874 0 0 0 47918712 3478 42214329 2115 5704383 1363 5705746 5705746 0 0 0 OTHER INCOME 900099 677414 677414 677414 203209707 184631934 9492119 198350 198350 236 236 15000 15000 0 5555433 3777694 1777739 0 73004062 49642762 23361300 6188483 4208168 1980315 7252898 4931971 2320927 4736129 3220568 1515561 0 1251639 1251639 242296 242296 0 0 345024 345024 11337277 7482603 3854674 939267 929874 9393 4776341 3582256 1194085 3563949 2672962 890987 0 4982975 3737231 1245744 3922180 2941635 980545 0 4670719 3503039 1167680 3425341 2397739 1027602 32813413 24610060 8203353 10213368 7660026 2553342 798328 598746 199582 COGS 11655609 11655609 0 VALIDATION & CALIBRATION 2043981 2043981 0 BANK & CREDIT CARD FEES 1453989 1090492 363497 PUBLICATIONS & SUBSCRIPTIONS 890798 445399 445399 592409 476219 116190 196869494 141822620 55046874 0 15960681 19011499 3441343 634221 2727927 2496341 43067646 24705262 0 0 0 0 0 0 49024356 48847687 3086743 3399729 187340067 68958819 119200035 118381248 84077147 100516528 12871925 10543143 0 0 0 0 36673335 37397863 370131138 365933521 37448067 45851575 0 0 2946422 4401013 109360000 109360000 0 0 0 0 24325723 1782341 0 0 0 0 174080212 161394929 X 196050926 204538592 0 0 0 0 196050926 204538592 370131138 365933521 X 6340213 2782208 22412 -657167 X false true X true true true X 37060996 11476249 12058237 10666763 9085654 80347899 117254467 133976191 148646258 165964538 184631934 750473388 31125 31125 0 0 154315463 145483565 160704495 176631301 193717588 830852412 0 0 0 830852412 3104918 3271009 3321352 2894581 3108959 15700819 0 3104918 3271009 3321352 2894581 3108959 15700819 0 3286090 677414 3963504 157420381 148754574 164025847 182811972 197503961 850516735 0.97688 0.97869 0.01846 0.01723 X SCHEDULE A, PART III, - OTHER INCOME 2012 2013 TOTAL ------ ------ ------- OTHER INCOME 3,286,090 677,414 3,963,504 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 71063 71063 141822620 141893683 1000000 250000 1000000 1000000 1000000 1000000 4000000 6000000 120022 120000 69122 71063 380207 250000 250000 250000 250000 1000000 1500000 11439846 11439846 103501262 24431538 79069724 3361889 498796 2863093 63885669 44028485 19857184 5151401 5151401 118381248 DEBT FINANCING 1066840 INVESTMENT IN FOREIGN SUBS 36137205 OTHER ASSETS 193818 37397863 0 0 X Liability for Uncertain Tax Positions (ASC 740) Schedule D, Part X, Line 2 USPC IS EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. USPC IS, HOWEVER, SUBJECT TO TAX ON ITS UNRELATED BUSINESS INCOME. FOR THE YEARS, ENDED JUNE 30, 2014 AND 2013 THERE WAS NO PROVISION FOR INCOME TAXES SINCE USPC HAD NO MATERIAL UNRELATED BUSINESS ACTIVITIES. true South America 1 35 Program Services Compendial 10848066 East Asia and the Pacific 1 69 Program Services Compendial 9424753 South Asia 1 144 Program Services Compendial 11665715 Europe (Including Iceland and Greenland) 1 5 Program Services Sales Office 1424843 Sub-Saharan Africa 1 7 Program Services PQM Office/USAID 83074 Sub-Saharan Africa 1 7 Program Services CePat 169269 Sub-Saharan Africa Grantmaking 15000 6 267 6 267 33630720 33630720 Sub-Saharan Africa SPONSORSHIP-SCI CONF ON MEDS REGULATION IN AFRICA 15000 WIRE 1 0 true false true false false false Procedure for Monitoring Use of Grant Funds Outside U.S. Schedule F, Part I, Line 2 USP WILL ESTABLISH A SPECIFIC REPORTING PROCESS AND TIMING WITH EACH INDIVIDUAL GRANT RECIPIENT. THE REPORTING METHODOLOGY AND TIMING OF THE REPORTS WILL VARY ON A PER GRANT BASIS. AT A MINIMUM, THE GRANTEE WILL BE EXPECTED TO PROVIDE A NARRATIVE STATEMENT AS TO THE PROGRESS MADE IN ACCOMPLISHING THE PURPOSE OF THE GRANT. true American Foundation for Pharma Edu (AFPE) 2107 WILSON BLVD 700 ARLINGTON VA 22201 530214882 501(c)(3) 22500 FELLOWSHIP - 3 PRE DOCTORAL GEORGIA TECH RESEARCH GROUP 505 10TH STREET ATLANTA GA 30332 580603146 501(c)(3) 18750 GLOBAL FELLOWSHIP PURDUE UNIV COLLEGE OF PHARMACY 575 STADIUM MALL DRIVE WEST LAFAYETTE IN 47906 356002041 501(c)(3) 50000 GLOBAL FELLOWSHIP HOWARD UNIVERSITY 525 BRYANT ST NW WASHINGTON DC 20059 530204707 501(c)(3) 50000 GLOBAL FELLOWSHIP APHA FOUNDATION 2215 CONSTITUTION AVE NW WASHINGTON DC 20037 526039142 501(c)(3) 20000 CONTRIBUTION - 2013 BOWL OF HYGEIA PLEDGE CONTRIBUTION - TRUMPETER 2013 CONTRIBUTION - 2013 CHEERS AWARD DINNER CONTRIBUTION - 2013 REGULATORY CONFERENCE CONTRIBUTION - GRAD STUDENT RESEARCH CONTRIBUTION - QUALITY CONTROL PROGRAM CONTRIBUTION - MEMORIAL FOR KAREN ALEXANDER CONTRIBUTION - MEMORIAL FOR DR. JOHN A MILNER PAN AMERICAN HEALTH AND EDUC FOUNDATION 525 23RD ST NW WASHINGTON DC 20037 237072046 501(c)(3) 20000 CONTRIBUTION - QUALITY CONTROL PROGRAM CONTRIBUTION - MEMORIAL FOR KAREN ALEXANDER CONTRIBUTION - MEMORIAL FOR DR. JOHN A MILNER 6 0 PROCESS FOR MONITORING USE OF GRANT FUNDS INSIDE U.S. Schedule I, Part I, Line 2 USP WILL ESTABLISH A SPECIFIC REPORTING PROCESS AND TIMING WITH EACH INDIVIDUAL GRANT RECIPIENT. THE REPORTING METHODOLOGY AND TIMING OF THE REPORTS WILL VARY ON A PER GRANT BASIS. AT A MINIMUM, THE GRANTEE WILL BE EXPECTED TO PROVIDE A NARRATIVE STATEMENT AS TO THE PROGRESS MADE IN ACCOMPLISHING THE PURPOSE OF THE GRANT. X false true X X X X X true true false false false false false false false Roger L Williams PhD Outgoing CEO 593930 0 77033 0 55039 0 67096 0 7348 0 800446 0 0 0 Susan S De Mars EVP, CHIEF LEGAL OFFICER 433543 0 48604 0 0 0 48215 0 16837 0 547199 0 0 0 Brian Hendrix Outgoing Chief Op. Officer 328998 0 59063 0 0 0 38806 0 9666 0 436533 0 0 0 Stamatia Calomeris DIRECTOR, COMM & DESIGN 246660 0 19562 0 105871 0 25500 0 7987 0 405580 0 0 0 Vijayaraghavan Srinivasan EVP, CHIEF SCIENCE OFFICER 439832 0 51875 0 240910 0 49171 0 11977 0 793765 0 0 0 Scott Henderson Sr.VP Info and Services 294671 0 30209 0 0 0 32488 0 16837 0 374205 0 0 0 Angela Long Sr.VP Global Alliance & Org 279015 0 33125 0 2573 0 31214 0 16837 0 362764 0 0 0 Susan Bach VP HUMAN RESOURCES 205540 0 21239 0 0 0 22678 0 5468 0 254925 0 0 0 Richard Wailes Incoming CHIEF OP. OFFICER 321575 0 30844 0 31629 0 35246 0 11796 0 431090 0 0 0 Barbara Hubert VP SALES & MARKETING 244360 0 27890 0 0 0 27225 0 5206 0 304681 0 0 0 Kevin Hool VP RESEARCH & INNOVATION 283885 0 27528 0 0 0 31141 0 16837 0 359391 0 0 0 Todd Cecil VP, CHEMICAL MEDICINES 241193 0 28965 0 0 0 27016 0 16069 0 313243 0 0 0 James Thompson VP Fin, Accounting & Treasury 199514 0 20988 0 0 0 22050 0 16028 0 258580 0 0 0 Matthew Van Hook VP GLOBAL LEGAL AFFAIRS 230545 0 25161 0 0 0 25571 0 5524 0 286801 0 0 0 Hermes van der Lee SVP GLOBAL LAB OPS 228111 19751 0 24786 711 273359 0 Anthony Destefano VP General Chapters 269863 26804 196212 26986 2004 521869 Shawn Dressman VP Chemical Medicines 150674 20413 17109 8708 196904 Tax Indemnification and Gross Up Payments Schedule J, Part I, Line 1B In 2013, Dr. Srini Srinivasan brought to USPs attention the significant tax liabilities that he incurred as a result of working in India at the India USP site through the years of 2010 and 2012. After reviewing documentation provided by Dr. Srinivasan and his tax counsel, USP consulted with outside counsel to review his tax liabilities for those two years. Following the USP counsels thorough analysis and recommendation, USP agreed to make a one-time payment of $191,523 to Dr. Srinivasan to reconcile these tax liabilities. Severance or change of control Schedule J, Part I, Line 4a STAMATIA CALOMERIS $97,812 Anthony DeStefano $188,100 Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b The following individuals participate in the supplemental nonqualified retirement plan: Todd Cecil Scott Henderson Brian Hendrix Richard Wailes Susan De Mars Kevin Hool Barbara Hubert Angela Long V. Srini Srinivasan Roger Williams Anthony DeStefano Matthew Van Hook The following individuals received a payout from the supplemental nonqualified retirement plan: Roger Williams $43,244 V. Srini Srinivasan $49,387 Richard Wailes $31,629 The following individuals received deferrals from the supplemental nonqualified retirement plan: Roger Williams $41,596 Susan De Mars $22,715 Brian Hendrix $13,306 V. Srini Srinivasan $23,671 Scott Henderson $6,988 Angela Long $5,714 Richard Wailes $9,746 Barbara Hubert $1,725 Kevin Hool $5,641 Todd Cecil $1,516 Anthony DeStefano $1,486 Matthew Van Hook $71 A MARYLAND ECONOMIC DEVELOPMENT CORPORATION 2012 521376562 2012-09-29 109360000 Refinance 2008 and 2009 tax-exempt false false false A 0 0 109360000 0 0 109360000 0 0 4524 0 109355476 0 2012 true false true true A false false false false 0.00000 0.00000 0.00000 false false false true A false true false false false false 0 false 0 false true A true X CONTRIBUTED RAW MATERIAL 265 1493147 REPLACEMENT COST false true false Program Service Accomplishments FORM 990, PART III, LINE 4A COMPENDIAL PROGRAMS - USP ESTABLISHES INTERNATIONALLY RECOGNIZED PUBLIC STANDARDS (BOTH DOCUMENTARY STANDARDS AND THE PHYSICAL REFERENCE MATERIALS THAT SUPPORT THE APPLICATION AND USE OF THESE DOCUMENTARY STANDARDS) TO HELP ASSURE GOOD QUALITY MEDICINES, DIETARY SUPPLEMENTS, FOOD INGREDIENTS, AND RELATED PRODUCTS USED TO MAINTAIN HEALTH AND TREAT DISEASE. THESE STANDARDS ARE DEVELOPED USING AN OPEN, PUBLIC PROCESS AND ARE APPROVED BY INDEPENDENT SCIENTIFIC EXPERTS. PRESCRIPTION AND OVER THE COUNTER MEDICINES AVAILABLE IN THE UNITED STATES MUST, BY FEDERAL LAW, MEET USP'S PUBLIC STANDARDS, WHERE SUCH STANDARDS EXIST. MANY OTHER COUNTRIES REQUIRE THE USE OF HIGH-QUALITY STANDARDS SUCH AS USP'S TO ASSURE THE QUALITY OF MEDICINES, FOOD INGREDIENTS, AND RELATED PRODUCTS. USP DISSEMINATES ITS STANDARDS TO PHARMACEUTICAL MANUFACTURERS, PHARMACISTS, FOOD MANUFACTURERS, AND OTHER USERS THROUGH ITS USP-NF, FOOD CHEMICALS CODEX (FCC), OTHER COMPENDIA AND PUBLICATIONS, AND OFFICIAL USP REFERENCE STANDARD MATERIALS. THESE STANDARDS ARE SHARED WITH OTHER COUNTRIES AROUND THE WORLD VIA THEIR DRUG REGULATORY AGENCIES AND COMPANIES. INCREASINGLY, DRUG REGULATORY AUTHORITIES IN OTHER COUNTRIES ARE RECEIVING ASSISTANCE FROM USP IN UNDERSTANDING HOW THEY CAN IMPROVE THE QUALITY OF MEDICINES PROVIDED TO THEIR CITIZENS BY USING USP STANDARDS. VOLUNTEER EXPERTS FROM THOSE COUNTRIES ARE ACTIVE PARTICIPANTS IN USP'S STANDARDS-SETTING BODIES. IN ADDITION, USP DEVELOPS STANDARDS THAT ARE VITAL TO ENSURING AND IMPROVING PATIENT SAFETY IN A VARIETY OF SETTINGS RELATED TO THE APPROPRIATE LABELING, STORAGE, DISTRIBUTION AND USE OF MEDICINES. HEALTH CARE CLINICIANS AS WELL AS PATIENTS RELY ON THESE STANDARDS TO HELP ENSURE THAT MEDICINES ARE DELIVERED AND USED APPROPRIATELY. Program Service Accomplishments FORM 990, PART III, LINE 4B ALLIED COMPENDIAL PROGRAMS - USP CONDUCTS VERIFICATION PROGRAMS FOR PHARMACEUTICAL INGREDIENTS, AND FOR DIETARY SUPPLEMENT INGREDIENTS AND PRODUCTS. THESE PROGRAMS INVOLVE INDEPENDENT TESTING AND REVIEW TO VERIFY THE IDENTITY, STRENGTH, QUALITY AND PURITY OF INGREDIENTS AND PRODUCTS FOR MANUFACTURERS WHO CHOOSE TO PARTICIPATE. THEY HELP TO IMPROVE THE QUALITY OF MEDICINES AND DIETARY SUPPLEMENTS THAT ARE MANUFACTURED AND THEN PROVIDED TO PATIENTS AND CONSUMERS THROUGH THE GLOBAL SUPPLY CHAIN. USP CONDUCTS EDUCATIONAL CLASSES AND PROGRAMS FOR CHEMISTS, SCIENTISTS, AND HEALTHCARE PRACTITIONERS IN THE UNITED STATES AND AROUND THE WORLD. USP SEEKS TO IMPROVE THE EFFECTIVE USE OF ITS STANDARDS THAT AFFECT BEST PRACTICES IN MANUFACTURING AND REGULATION OF PHARMACEUTICALS, DIETARY SUPPLEMENTS, AND FOOD INGREDIENTS. Program Service Accomplishments FORM 990, PART III, LINE 4C NON COMPENDIAL PROGRAMS - USP ENGAGES IN OTHER PUBLIC HEALTH INITIATIVES INCLUDING SERVING AS THE SECRETARIAT FOR A MAJOR GROUP OF OTHER NON-PROFIT ORGANIZATIONS THAT JOIN TO COORDINATE PATIENT SAFETY/MEDICAL ERROR EFFORTS. UNDER FEDERAL LAW, ONE OF USP'S HEALTH CARE INFORMATION INITIATIVES IS THE DEVELOPMENT OF A DRUG CLASSIFICATION SYSTEM THAT MEDICARE PRESCRIPTION DRUG BENEFIT PLANS MAY USE TO DEVELOP THEIR FORMULARIES. PROMOTING THE QUALITY OF MEDICINES (PQM): USP PARTICIPATES IN A COOPERATIVE AGREEMENT WITH THE US AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID). UNDER THIS AGREEMENT USP WORKS IN DEVELOPING COUNTRIES TO STRENGTHEN QUALITY ASSURANCE AND QUALITY CONTROL SYSTEMS, INCREASE THE SUPPLY OF QUALITY ASSURED MEDICINES, COMBAT THE AVAILABILITY OF SUBSTANDARD AND COUNTERFEIT MEDICINES, AND PROVIDE TECHNICAL LEADERSHIP AND GLOBAL ADVOCACY. CENTER FOR PHARMACEUTICAL ADVANCEMENT AND TRAINING (CEPAT) ADDRESSES DEFICIENCIES IN HUMAN AND LABORATORY RESOURCES IN PHARMACEUTICAL QUALITY CONTROL AND SEEKS TO BUILD CAPACITY OF AFRICAN PROFESSIONALS IN QUALITY CONTROL AND QUALITY ASSURANCE OF MEDICINES. USPS TECHNICAL ASSISTANCE AND GLOBAL HEALTH IMPACT PROGRAMS PROMOTE THE USE OF QUALITY STANDARDS IN DEVELOPING COUNTRIES TO HELP AND IMPROVE THE DEVELOPMENT AND REGULATION OF MEDICINES AND FOODS IN SUCH REGIONS. Members or Stockholders Form 990, Part VI, Line 6 The members of USP are representatives from organizations in the US and abroad in the following categories: - Health Practitioner professional and scientific associations - Consumer and other public interest organizations - Manufacturer, trade, and affiliated associations - Governmental bodies, divisions, or associations - Non-government standards-setting and conformity assessment bodies Members or Stockholders Who May Elect and Decisions Subject to Approval Form 990, Part VI, Line 7a & 7b THE MEMBERS OF USP ELECT THE MEMBERS OF THE BOARD OF TRUSTEES AT EACH FIVE-YEAR MEETING OF THE CONVENTION. UP TO THREE ADDITIONAL TRUSTEES MAY BE APPOINTED BY THE BOARD DURING THE FIVE-YEAR CYCLE. Form 990 Review Process Form 990, Part VI, Line 11b The Form 990 was reviewed thoroughly by the organization's Vice President of Finance, Accounting & Treasury in initial draft and final form prior to filing. The Form 990 was provided to the audit committee for review and approval. The Form 990 was also made available electronically to all members of the board of directors before it was filed with the IRS. Conflict of Interest Policy Monitoring & Enforcement Form 990, Part VI, Line 12c USP's conflict of interest policy is reflected in its bylaws and in its code of ethics. This policy is implemented with respect to our employees and volunteers (members of the board of trustees and the council of experts and expert committees, USP's standard setting bodies) through specific provisions in the employee handbook, the rules of business practice for the board of trustees, and the rules and procedures of the council of experts. All trustees, members of the council of experts and expert committees, and employees in director level or above positions or positions where they work with expert committees are required to submit and keep current a disclosure statement identifying any conflict of interest. For USP's volunteers, a conflict of interest is defined broadly under the bylaws to include a financial interest in a company or any other relationship or interest that could interfere with the individual's ability to exercise independent judgment. Trustees, experts and employees are required to recuse themselves from any matter in which they have a potential conflict, and employees may also be required to divest themselves of interests that present a potential conflict. At each meeting of the board and all expert committees, the chair reminds member of the conflict of interest rules. The identification and resolution of conflicts of interest is handled as follows for USP employees and volunteers: Employees: Disclosure statements are collected annually by the legal department from employees at the director level and above and employees who work directly with USP's expert committees. If an employee discloses that he or she has a financial interest above the specified threshold, the Chief Legal Officer reviews the interest with the CEO. If the CEO determines that the interest is an isolated one and one that would be difficult to divest (e.g., a retirement plan from a former employer, or a spouse's employment), the employee is allowed to retain the interest but must recuse himself/herself in any situation where there is a potential conflict. In other cases, such as where there are multiple interests above the threshold, the CEO may ask the employee to divest. Members of the Board of Trustees: Disclosure statements are collected by the secretary, and the board members have an obligation to update them as necessary to keep them current. If a board member has a potential conflict, then in accordance with the bylaws he or she must recuse himself/herself from any final deliberation and vote in the matter. Council of Experts and Expert Committee Members: Disclosure statements are collected by the executive secretariat, and members have an obligation to update them as necessary to keep them current. The chair of each expert committee, working with staff (scientific liaison/executive secretariat/secretary), has responsibility for resolving conflict issues. Process for Determining Compensation Form 990, Part VI, Line 15A & 15B The USP Board of Trustees approved a total compensation philosophy with the following key provisions: - USP will link base pay and variable pay to performance in such a way that it aligns with USP's strategic planning process and outcome-based metrics, and results in differential rewards. - USP will continually evaluate and realign performance measures to conform to changing strategic goals and other business needs. - USP's total cash compensation program will be designed using a market-driven whole job family structure to deliver above average total compensation, direct and indirect, relative to those offered within various labor markets in which USP competes for talent. - The total compensation package will be established, reviewed, and approved in a manner that qualifies for the rebuttable presumption of reasonableness and will be reviewed periodically to ensure that it continues to be aligned with USP's strategic direction and financial limits and continues to be both reasonable and competitive. Under the rules of business practice of the board of trustees, the operations committee of the board is responsible for overseeing the organization's compensation and benefits systems and programs, including: 1. Reviewing and making recommendations to the Board regarding the overall compensation philosophy and principles of the organization. 2. Reviewing the structure of the staff compensation program, including salary levels, benefits, and the success sharing plan and the extent to which they are achieving desired purposes. 3. Reviewing and making recommendations to the executive committee and the board regarding employee benefit plans and employee benefits, with the board retaining responsibility for final approval of the insurer or insurers through whose policies the plan benefits are to be funded and the rules and procedures for administration of the plan. 4. Based on input from the evp-ceo, reviewing and making recommendations to the board regarding the proposed metrics for organizational performance under the success sharing plan, and the achievement of such metrics. In addition to periodic independent consultant evaluations, management annually uses published studies of the Human Resources Association of the National Capital Area, the American Research Company, and CEO Update to align and adjust the compensation structure and practices according to market trends. Further, individual compensation decisions are made in partnership between Human Resources and the hiring supervisor, reviewed by department vice presidents and/or division chiefs. All staff compensation actions are ultimately reviewed and approved by the CEO. For CEO compensation, the Board Chair annually receives current market data for chief staff executive positions which is shared with the Executive Committee. The Executive Committee makes all CEO compensation decisions and the Board Chair and Board Treasurer approve those decisions in writing. The 2014 compensation of USP officers and/or other key executives was based on a salary structure that was developed using external market data derived from a compensation study completed by PRM Consulting in the Fall of 2012. Additionally, in April 2014 PRM Consulting reviewed the salaries of USP's key executives to ensure that the compensation was still appropriate, and determined that the base salaries and total compensation were in line with the benchmark data and that the salary structure remained competitive and current with the market. That information was provided to the Operations Committee of the Board of Trustees who accepted PRM's findings. The CEO's compensation was reviewed and approved by the Chair of the Board of Trustees and the Executive Operations Committee of the Board of Trustees in September 2014. How Documents are Made Available to the Public Form 990, Part VI, Line 19 USP makes these documents available to the public to the extent required by law. Other Changes in Net Assets or Fund Balances: Form 990, Part XI, Line 9 Unrealized Foreign Exchange Losses $(657,167) USP HOLDING LLC 12601 TWINBROOK PARKWAY ROCKVILLE MD 20852 562515663 HOLDING MD 466971 2960709 USP USP HOLDING INTERNATIONAL LLC 12601 TWINBROOK PARKWAY ROCKVILLE MD 20852 562515662 HOLDING MD 0 24 USP US PHARMACOPEIA INDIA PRIVATE LTD ICICI KNOWLEDGE PARK GENOME VALLEY HYDERBAD IN 500 LABS 7-10, 131656692 SCIENTIFIC IN USPHUSPHI C Corp 11858517 16130944 1.00000 true US PHARMACOPEIA RESEARCH AND DVP CORP BUILDING 11 ALLEY 67 LIBING ROAD SHANGHAI CH 2012 ZAHANGIJAN 131656692 SCIENTIFIC CH USP Holding C Corp 3351040 4643966 1.00000 true UNITED STATES FARMACOPEIA BRASIL LTDA WTORRE TECHNOLOGY PARK AVENIDA CECI SAO PAULO BR N. 1600 131656692 SCIENTIFIC BR USPHUSPHI C Corp 11448219 10584071 1.00000 true US PHARMACOPEIA STND RESEARCH & DEV Waigaoqiao Free Trade 520 NFu Te SHANGHAI CH 200131 131656692 SCIENTIFIC CH USP Holding C Corp 6344667 33749870 1.00000 true CENTER FOR PHARM ADVANCEMENT AND TRAIN No3 Park Avenue Motorway Extensio ACCRA GH WY 1204 131656692 SCIENTIFIC GH USPHUSPHI C Corp 169269 1370201 1.00000 true false true false false false false false false false false false false false false false false false false false Center for Pharmaceutical Advacement & Train b 800000 Cash