2012-04-17T12:26:20-05:00 2011-06-30 DELOITTE TAX LLP 100 PEABODY PLACE STE 800 MEMPHIS TN 38103 990 2010-07-01 620646012 ST JUDE CHILDREN'S RESEARCH HOSPITAL INC STJU 9015952261 262 DANNY THOMAS PLACE MEMPHIS TN 381053678 MICHAEL C CANARIOS 9015952261 2012-04-19 1 9013226700 2010 2016-02-24 21:20:13Z WILLIAM E EVANS 262 DANNY THOMAS PLACE MEMPHIS TN 381053678 574006112 0 X WWW.STJUDE.ORG X 1959 TN ST. JUDE CHILDREN'S RESEARCH HOSPITAL IS A RESEARCH, TREATMENT AND EDUCATION CENTER WHOSE MISSION IS TO ADVANCE CURES, AND MEANS OF PREVENTION, FOR PEDIATRIC CATASTROPHIC DISEASES THROUGH RESEARCH AND TREATMENT. CONSISTENT WITH THE FOUNDER, DANNY THOMAS, NO CHILD IS DENIED TREATMENT BASED ON RACE, RELIGION OR A FAMILY'S ABILITY TO PAY. 45 39 4056 535 0 0 497346239 476590185 83759361 88718150 -71966 -10080 8851455 8438765 589885089 573737020 0 22000 0 0 313143592 321457685 0 0 0 281780339 278552019 594923931 600031704 -5038842 -26294684 2440966547 2859908493 317696642 318269139 2123269905 2541639354 X ST. JUDE CHILDREN'S RESEARCH HOSPITAL IS A RESEARCH, TREATMENT AND EDUCATION CENTER WHOSE MISSION IS TO ADVANCE CURES, AND MEANS OF PREVENTION, FOR PEDIATRIC CATASTROPHIC DISEASES THROUGH RESEARCH AND TREATMENT. CONSISTENT WITH THE FOUNDER, DANNY THOMAS, NO CHILD IS DENIED TREATMENT BASED ON RACE, RELIGION OR A FAMILY'S ABILITY TO PAY. 0 0 299348142 RESEARCH: THE CURRENT BASIC SCIENCE AND CLINICAL RESEARCH AT THE HOSPITAL INCLUDES WORK IN GENE THERAPY, CHEMOTHERAPY, THE BIOCHEMISTRY OF NORMAL AND CANCEROUS CELLS, RADIATION TREATMENT, BLOOD DISEASES, RESISTANCE TO THERAPY, VIRUSES, HEREDITARY DISEASES, INFLUENZA, PEDIATRIC AIDS AND PHYSIOLOGICAL EFFECTS OF CATASTROPHIC ILLNESSSES. THE HOSPITAL AWARDS NO GRANTS TO OUTSIDE AGENCIES. ALL RESEARCH ACTIVITIES ARE CONDUCTED BY HOSPTIAL PERSONNEL. 7804188 EDUCATION AND TRAINING: AS PART OF ITS EDUCATIONAL MISSION, THE HOSPITAL PROVIDES APPROXIMATELY 350 POSTDOCTORAL FELLOWSHIPS TO INDIVIDUALS WHO ALREADY HAVE EARNED AN MD, PHD, PHARMD, OR DVM. THE HOSPITAL IS ALSO AFFILIATED WITH THE UNIVERSITY OF TENNESSEE HEALTH SCIENCES CENTER AT MEMPHIS, SERVING AS A TRAINING SITE FOR GRADUATE STUDENTS, MEDICAL STUDENTS, MEDICAL RESIDENTS, AND UNDERGRADUATE STUDENTS IN RELEVANT APPLIED HEALTH PROGRAMS. THIS TRAINING IS PROVIDED IN A VARIETY OF SUBSPECIALTIES AND RESEARCH DISCIPLINES IN THE CLINICAL AND BASIC SCIENCES UNDER THE DIRECTION OF SENIOR CLINICAL AND RESEARCH FACULTY. A PEDIATRIC ONCOLOGY EDUCATION PROGRAM, OFFERING SUMMER TRAINING IN RESEARCH AND CLINICAL DISCIPLINES TO COLLEGE STUDENTS, IS AN INTEGRAL PART OF ST. JUDE'S COMMUNITY EDUCATION ACTIVITIES. ST. JUDE ALSO HAS GRADUATE PROGRAMS CONDUCTED UNDER FORMAL AFFILIATION AGREEMENTS WITH THE UNIVERSITY OF MEMPHIS AND THE UNIVERSITY OF MISSISSIPPI. UNDERGRADUATE PROGRAMS INCLUDE THE RHODES COLLEGE SUMMER PLUS PROGRAM (RHODES COLLEGE) AND CHRISTIAN BROTHERS UNIVERSITY. 265713135 88718150 PATIENT CARE: THE HOSPITAL PROVIDED 14,857 INPATIENT DAYS OF CARE DURING THE YEAR. OUR BONE MARROW TRANSPLANTATION PROGRAM ACCOUNTED FOR 3,229 OR 22% OF THOSE INPATIENT DAYS. PATIENTS MADE 63,395 CLINIC VISITS DURING THE YEAR. 572865465 1 1 0 1 0 0 0 0 0 1 0 0 1 1 1 1 1 0 1 1 1 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 1 1 1 0 0 0 0 1 1 1 0 0 0 1 865 0 1 4056 1 0 0 0 0 0 0 X 45 39 1 0 1 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 TN X X MICHAEL C CANARIOS 9015952261 262 DANNY THOMAS PLACE MEMPHIS TN 381053678 X JOYCE ABOUSSIE 4.00 X 0 0 0 THOMAS G ABRAHAM 4.00 X 0 0 0 SUSAN MACK AGUILLARD MD 4.00 X 0 0 0 MAHIR AWDEH MD 4.00 X 0 0 0 JOSEPH S AYOUB JR ESQ 4.00 X 0 0 0 PAUL J AYOUB ESQ 4.00 X 0 0 0 JAMES B BARKATE 4.00 X 0 0 0 MARTHA PERINE BEARD 8.00 X 0 0 0 KATHIE BERLIN 4.00 X 0 0 0 SHERYL BOURISK 4.00 X 0 0 0 ROBERT A BREIT MD 8.00 X 0 0 0 TERRY BURMAN 8.00 X 0 0 0 STEPHEN J CAMER MD 4.00 X 0 0 0 TONY CHARAF 4.00 X 0 0 0 ANN M DANNER 4.00 X 0 0 0 FRED P GATTAS JR 4.00 X 0 0 0 FRED P GATTAS III 4.00 X 0 0 0 CHRISTOPHER GEORGE MD 4.00 X 0 0 0 JUDY HABIB 4.00 X 0 0 0 PAUL K HAJAR 4.00 X 0 0 0 CHUCK HAJJAR 4.00 X 0 0 0 FRED R HARRIS 4.00 X 0 0 0 BRUCE B HOPKINS 4.00 X 0 0 0 RICHARD IEYOUB 4.00 X 0 0 0 RICHARD KARAM ESQ 4.00 X 0 0 0 SALLI LEVAN 4.00 X 0 0 0 PAUL MARCUS 4.00 X 0 0 0 MICHAEL D MCCOY 4.00 X 0 0 0 ROBERT T MOLINET 4.00 X 0 0 0 JIM NAIFEH JR 4.00 X 0 0 0 THOMAS PENN III 4.00 X 0 0 0 MANAL SAAB 4.00 X 0 0 0 CAMILLE F SARROUF SR ESQ 4.00 X 0 0 0 CAMILLE F SARROUF JR ESQ 4.00 X 0 0 0 JOSEPH G SHAKER 4.00 X 0 0 0 GEORGE A SIMON II 4.00 X 0 0 0 PAUL J SIMON 4.00 X 0 0 0 TERRE THOMAS 4.00 X 0 0 0 TONY THOMAS 4.00 X 0 0 0 PAT KERR TIGRETT 4.00 X 0 0 0 RICHARD M UNES 4.00 X 0 0 0 PAUL H WEIN ESQ 4.00 X 0 0 0 TOM WERTZ 4.00 X 0 0 0 RAMZI T YOUNIS MD 4.00 X 0 0 0 TAMA ZAYDON 4.00 X 0 0 0 RAYMOND J ZOGHBY 4.00 X 0 0 0 RICHARD C SHADYAC JR 1.00 X 0 477920 37700 WILLIAM E EVANS 55.00 X X 824033 0 39737 JAMES R DOWNING 55.00 X 713609 0 41040 MICHAEL C CANARIOS 55.00 X 362871 0 67624 MICHAEL B KASTAN 55.00 X 586180 0 79729 JOSEPH H LAVER 55.00 X 574337 0 67569 LARRY E KUN 55.00 X 734940 0 43053 GEORGE B BIKHAZI 55.00 X 480323 0 39740 ANDREW DAVIDOFF 55.00 X 531937 0 85451 STEPHEN J SHOCHAT 55.00 X 503725 0 42332 LESLIE L ROBISON 55.00 X 466742 0 40721 5778697 477920 584696 363 0 1 0 UNIVERSITY OF TENNESSEE 62 S DUNLAP RM 300 MEMPHIS TN 38163 MEDICAL 4592513 CERNER CORP PO BOX 412702 KANSAS CITY MO 641412702 CONSULTING 4369238 UT MED GROUP INC 1407 UNION AVE SUITE 720 MEMPHIS TN 381043641 MEDICAL 3960299 DYNAMIX GROUP INC PO BOX 116609 ATLANTA GA 303686609 MAINTENANCE SERVICE 2911108 GUARDSMARK LLC PO BOX 11407 BIRMINGHAM AL 352463000 SECURITY 2654325 159 375102514 91558250 9929421 476590185 PATIENT CARE 621110 88718150 88718150 88718150 186842 72170 144500 124592 42342 -52422 -10080 -10080 PATENTS/LICENSING INCO 900099 2988653 2988653 CAFETERIA/VENDING 722212 2758811 2758811 CHGME/CHCA 900099 1409444 1409444 1281857 1281857 8438765 573737020 97146835 0 0 22000 22000 3506742 2140968 1365774 245614223 229849998 15764225 15926329 14904132 1022197 39675073 37128613 2546460 16735318 15661197 1074121 4336675 4153561 183114 1553457 1487863 65594 228428 218783 9645 29000 29000 69856390 64585625 5270765 707622 677743 29879 2059131 2025505 33626 10042735 9618685 424050 20723028 18062217 2660811 9444440 9052859 391581 1269066 949329 319737 10402374 10383524 18850 63101064 60135931 2965133 1159089 1159089 LABORATORY SUPPLIES 28536697 28070684 466013 0 PHAMACEUTICAL SUPPLIES 24408957 24010351 398606 0 PATIENT CARE SUPPLIES 6094552 5995026 99526 0 TELEPHONE 1128421 1005683 122738 0 ALLOCATION ADJUSTMENTS 0 10239539 -10239539 0 23470893 22456649 1014244 600031704 572865465 27166239 0 6602155 2426793 10752450 10099500 8044487 11133917 14294962 11816086 4107758 3732709 13870573 11203641 914182000 490909539 441776563 423272461 1264640 1494392 1940252959 2384728994 2440966547 2859908493 71047212 75926446 5330877 6415432 239523268 234467223 1795285 1460038 317696642 318269139 X 1423253486 1704992562 37242519 46913705 662773900 789733087 2123269905 2541639354 2440966547 2859908493 X -26294684 444664133 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 15500 0 1 13500 29000 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: ST. JUDE RETAINED SNR DENTON FOR FEDERAL POLICY CONSULTING AND SMITH, HARRIS & CARR FOR STATE POLICY CONSULTING. AMOUNT LISTED IS RETAINER FEES PRORATED FOR DIRECT FEDERAL AND STATE LEGISLATIVE CONTACTS. 624749060 311325546 313423514 283266502 177344477 105922025 6166438 2239516 3926922 423272461 INTEREST IN NET ASSETS OF AMERICAN LEBANESE SYRIAN ASSOCIATED CHARITIES, INC 2381645965 UNAMORTIZED BOND ISSUANCE COSTS 1364638 PROPERTY HELD FOR RESALE 1718391 2384728994 SELF INSURANCE LIABILITY 428408 WORKER'S COMPENSATION 1031630 1460038 573737020 600031704 -26294684 169320 444494813 444664133 418369449 198856248 169320 169320 198686928 375050092 375050092 573737020 600031704 0 600031704 0 600031704 PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN INTEREST IN UNRESTRICTED NET ASSETS ALSAC 308,964,137. CHANGE IN INTEREST IN NET ASSET OF ALSAC 135,530,676. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET SUPPORT RECEIVED FROM ALSAC 375,102,514. LOSS FROM DISPOSAL OF PROPERTY AND EQUIPMENT -52,422. PART X, LINE 2 - THE HOSPITAL ADOPTED THE PROVISIONS OF ASC TOPIC 740, INCOME TAXES ON JULY 1, 2009. APPLICATION OF ASC TOPIC 740 TO A TAX-EXEMPT ORGANIZATION IS PRIMARILY DIRECTED AT THE CHARACTERIZATION OF INCOME AS TAX EXEMPT (RELATED OR EXCLUDED EXEMPT FUNCTION INCOME) AND/OR TAXABLE AS UNREALTED BUSINESS INCOME AS DEFINED IN THE CODE. THE HOSPITAL EVALUATED THE EFFECT OF ASC TOPIC 740 AND DETERMINED THAT NO ADJUSTMENTS TO ITS CONSOLIDATED FINANCIAL STATEMENTS WERE REQUIRED UPON THE ADOPTION OF ASC TOPIC 740 ON JULY 1, 2009. AS OF JUNE 30, 2011, THE HOSPITAL HAD NOT IDENTIFIED ANY UNCERTAIN TAX POSITIONS UNDER ASC 740 REQUIRING ADJUSTMENTS TO ITS CONSOLIDATED FINANCIAL STATEMENTS. IN THE EVENT THE HOSPITAL WERE TO RECOGNIZE INTEREST AND PENALTIES RELATED TO UNCERTAIN TAX POSITIONS, IT WOULD BE RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS AS INTEREST EXPENSE FOR INTEREST AND MISCELLANEOUS FOR PENALTIES. GENERALLY, TAX YEARS 2007 THROUGH 2010 ARE OPEN TO EXAMINATION BY THE FEDERAL AND STATE TAXING AUTHORITIES, RESPECTIVELY. THERE ARE NO INCOME TAX EXAMINATIONS CURRENTLY IN PROCESS. CENTRAL AMERICA & THE CARIBBEAN 0 0 PROGRAM SERVICES EDUCATION & TRAINING 676059 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES EDUCATION & TRAINING 515914 MIDDLE EAST AND NORTH AFRICA 0 1 PROGRAM SERVICES EDUCATION & TRAINING 1619497 NORTH AMERICA 0 0 PROGRAM SERVICES EDUCATION & TRAINING 169196 RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 PROGRAM SERVICES EDUCATION & TRAINING 6818 SOUTH AMERICA 0 0 PROGRAM SERVICES EDUCATION & TRAINING 646605 0 1 0 0 0 1 3634089 0 3634089 X SOUTH AMERICA GENERAL SUPPORT 11000 EQUIPMENT BOOK CENTRAL AMERICA AND THE CARIBBEAN GENERAL SUPPORT 11000 EQUIPMENT BOOK 2 0 0 0 0 0 0 1 1 0 0 1 1 0 0 30554523 97160 30457363 0.05080 86736031 22112840 64623191 0.10770 117290554 22210000 95080554 0.15850 11788710 251 11788459 0.01960 6680046 275342 6404704 0.01070 16542687 16542687 0.02760 266392204 2988654 263403550 0.43900 25200 25200 0.00000 301428847 3264247 298164600 0.49690 418719401 25474247 393245154 0.65540 110049 110049 0.00020 5519 5519 0.00000 64831 64831 0.00010 180399 180399 0.00030 0 347396 813113 886097 -72984 X 1 1 1 1 ST JUDE CHILDREN'S RESEARCH HOSPITAL

262 DANNY THOMAS PLACE MEMPHIS TN 381053678

X X X SEE SCHEDULE H, PART VI (SECTION B OPTIONAL FOR 2010) 1 PART I, LINE 3C: ALL CHILDREN ARE TREATED AT ST. JUDE CHILDREN'S RESEARCH HOSPITAL REGARDLESS OF RACE, RELIGION, OR ABILITY TO PAY. A BILLING SYSTEM IS MAINTAINED FOR EACH PATIENT, BUT BILLS ARE NOT SENT TO ANY PATIENT. IF THE PATIENT HAS INSURANCE, THE HOSPITAL BILLS THE PATIENT'S HEALTH INSURANCE PLAN. BY COLLECTING INSURANCE PAYMENTS THAT WOULD BE DUE HAD THE PATIENT RECEIVED TREATMENT AT NEARLY ANY OTHER HOSPITAL IN THE COUNTRY, AND WITH THE ASSISTANCE OF ST. JUDE DONORS, ST. JUDE HAS BEEN ABLE TO USE OUR FINANCIAL RESOURCES TO CONDUCT CUTTING-EDGE RESEARCH AND COVER TREATMENTS, COPAYS, DEDUCTIBLES, AND COINSURANCE THAT ARE NOT COVERED BY INSURANCE. THUS, ANY LEGAL OBLIGATION OF PAYMENT FOR A PATIENT'S COSTS THAT ARE NOT COVERED BY INSURANCE IS COVERED BY THE GENEROUS ASSISTANCE OF ST. JUDE DONORS WITH THE RESULT THAT ST. JUDE DOES NOT ASK A PATIENT TO PAY. THE METHOD OF APPLYING FOR FINANCIAL ASSISTANCE AT ST. JUDE IS UNIVERSAL AND CONFORMS TO THE PRINCIPLES STATED. ALL ST. JUDE PATIENTS RECEIVE THE SAME FINANCIAL ASSISTANCE. ST. JUDE DOES NOT PURSUE COLLECTION EFFORTS AGAINST ANY PATIENT FAMILY. PART I, LINE 7: COST-TO-CHARGE RATIO DERIVED FROM WORKSHEET 2, RATIO OF PATIENT CARE COST TO CHARGES. COST-TO-CHARGE RATIO USED FOR LINE 7A FINANCIAL ASSISTANCE AT COST AND LINE 7B UNREIMBURSED MEDICAID. PART I, LINE 7G: ST. JUDE CHILDREN'S RESEARCH HOSPITAL INCLUDED AS SUBSIDIZED HEALTH SERVICES SUPPORT FOR SIX AFFILIATE CLINICS TOTALING APPROXIMATELY $6 MILLION. PART I, LINE 7C: CHIPS IS INCLUDED IN UNREIMBURSED MEDICAID IN PART I, LINE 7B BECAUSE IN MANY STATES THE CHIPS PROGRAMS ARE MANAGED BY THE SAME THIRD PARTY ADMINISTRATORS AND IT IS DIFFICULT TO DISTINGUISH BETWEEN CHIPS VS. MEDICAID COVERAGE. PART II: THE ST. JUDE CHILDREN'S RESEARCH HOSPITAL CEO IS A MEMBER OF MEMPHIS TOMORROW. MEMPHIS TOMORROW IS AN ASSOCIATION OF CHIEF EXECUTIVE OFFICERS OF MEMPHIS LARGEST ENTERPRISES. THE PURPOSE IS TO BRING TOP BUSINESS LEADERS TOGETHER WITH GOVERNMENT AND CIVIC LEADERS TO FOSTER ECONOMIC PROSPERITY FOR ALL WHO LIVE IN OUR COMMUNITY. ST. JUDE ALSO PARTICIPATES WITH MEMPHIS FAST FORWARD WHOSE STRATEGIES ARE BASED ON THE COMMON SENSE PREMISE THAT ECONOMIC GROWTH AND PROSPERITY, AND IMPROVED QUALITY OF LIFE, WILL FOLLOW ONCE MEMPHIS AND SHELBY COUNTY SUCCESSFULLY ADDRESS THE BASICS: GOOD JOBS, QUALITY EDUCATION, SAFE STREETS AND EFFICIENT GOVERNMENT. ST. JUDE IS A COMMUNITY PARTNER WITH THE MEMPHIS BIOWORKS FOUNDATION. THE MEMPHIS BIOWORKS FOUNDATION IS EXECUTING A STRATEGIC BUSINESS PLAN THAT LEVERAGES THE COMPETITIVE STRENGTHS WITHIN THE REGION WHILE EXPANDING THE INFRASTRUCTURE, EDUCATIONAL OPPORTUNITIES, AND ENTREPRENEUR SUPPORT NEEDED TO EXPAND BIOSCIENCE INDUSTRIES. ST. JUDE IS A MEMBER OF THE ASPIRING FOR PURCHASING EXCELLENCE (APEX) ASSOCIATION OF MEMPHIS. APEX IS AN ASSOCIATION OF PURCHASING AND PROCUREMENT PROFESSIONALS FROM MEMPHIS ORGANIZATIONS WHOSE PURPOSE IS TO PROMOTE BEST PRACTICES IN SUPPLIER DIVERSITY. ADDITIONALLY, ST. JUDE IS SILVER SPONSOR FOR THE MID-SOUTH MINORITY BUSINESS COUNCIL (MMBC) ECONOMIC DEVELOPMENT FAIR. THE MMBC SERVES AS THE MID-SOUTH'S FOREMOST MINORITY BUSINESS DEVELOPMENT ORGANIZATION. THE MMBC HELPS TO DEVELOP A STRONG MINORITY AND WOMEN BUSINESS COMMUNITY IN AN EFFORT TO IMPACT ECONOMICALLY THE ENTIRE MID-SOUTH REGION. ST. JUDE EMPLOYEES ARE INVOLVED IN THE TENNESSEE COMPREHENSIVE CANCER CONTROL COALITION WHICH EXISTS TO WAGE A UNIFIED FIGHT AGAINST CANCER ACROSS THE STATE. TO THIS AIM, THE COALITION HAS DEVELOPED AND SUSTAINED AN INTEGRATED AND COORDINATED APPROACH TO REDUCING CANCER INCIDENCE, MORTALITY, AND MORBIDITY AND IMPROVING THE QUALITY OF LIFE FOR THOSE AFFECTED BY CANCER IN TENNESSEE. ST. JUDE EMPLOYEES PARTICIPATE IN HEALTHY MEMPHIS COMMON TABLE WHICH FOCUSES ITS ENERGIES ON BUILDING COMMUNITY-WIDE COLLABORATION FOR POPULATION HEALTH, HEALTH EQUITY, AND IMPROVING THE HEALTH CARE DELIVERY SYSTEMS OF CARE.THE ST. JUDE CHIEF NURSE OFFICER CHAIRS THE NURSING INSTITUTE OF THE MID-SOUTH WHICH IS A MEMBER COLLABORATIVE COMPRISED OF LOCAL HOSPITALS AND SCHOOLS OF NURSING CHALLENGED WITH PROVIDING COMPREHENSIVE HEALTH EDUCATION AND SERVICES TO A WIDELY DIVERSE, POVERTY-RIDDEN COMMUNITY AND WITH ADDRESSING THE HEALTH DISPARITIES FOUND AMONG THESE RESIDENTS. TENNESSEE HAS A SIGNIFICANT PROJECTED NURSING WORKFORCE SHORTAGE; RANKING FIFTH WORST IN 2010.THE HEMATOLOGY, PATHOLOGY, AND VOLUNTEER SERVICES DEPARTMENTS AT ST. JUDE PROVIDE SUMMER PROGRAMS FOR HIGH SCHOOL AND COLLEGE STUDENTS THAT DRIVE ENTRY INTO HEALTH CAREERS. ST. JUDE EMPLOYEES ARE INVOLVED WITH THE INSTITUTE OF ELECTRICAL AND ELECTRONICS ENGINEERS AND THE MID-SOUTH STEM (SCIENCE, TECHNOLOGY, ENGINEERING, MATHEMATICS) ALLIANCE WHICH HAVE GOALS TO INCREASE THE NUMBER OF STUDENTS WHO CHOOSE SCIENCE AND HEALTH CAREERS AND INCREASE THE QUALITY OF STEM EDUCATION. PART III, LINE 4: BAD DEBT EXPENSE EXPLANATION IN FINANCIAL STATEMENT FOOTNOTES IS AS FOLLOWS:"NET PATIENT SERVICE REVENUES AND RECEIVABLES - NO FAMILY EVER PAYS THE HOSPITAL FOR THE CARE THEIR CHILD RECEIVES. ACCORDINGLY, NET PATIENT SERVICE REVENUE CONSISTS ONLY OF ESTIMATED NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYORS FOR SERVICES RENDERED, INCLUDING ESTIMATED RETROACTIVE REVENUE ADJUSTMENTS (IF NECESSARY) DUE TO FUTURE AUDITS, REVIEWS, AND INVESTIGATIONS. RETROACTIVE ADJUSTMENTS ARE CONSIDERED IN THE RECOGNISTION OF REVENUE ON AN ESTIMATED BASIS IN THE PERIOD THE RELATED SERVICES ARE RENDERED, AND SUCH AMOUNTS ARE ADJUSTED IN FUTURE PERIODS AS ADJUSTMENTS BECOME KNOWN OR AS YEARS ARE NO LONGER SUBJECT TO SUCH AUDITS, REVIEWS, AND INVESTIGATIONS. PATIENT SERVICE REVENUE HAS BEEN REDUCED BY ADJUSTMENTS FOR UNCOLLECTIBLE ACCOUNTS TOTALING APPROXIMATELY $532,000 AND $3,400,000 IN 2011 AND 2010, RESPECTIVELY.COSTING METHODOLOGY - THE SAME COSTING METHODOLOGY WAS USED FOR CHARITY CARE, MEANS-TESTED GOVERNMENT PROGRAMS, AND BAD DEBT-THE COST TO CHARGE RATIO DERIVED FROM WORKSHEET 2. BAD DEBT EXPENSE IS CALCULATED BY ACCUMULATING CHARGES ON ACCOUNTS DETERMINED TO BE UNCOLLECTIBLE. SEE NARRATIVE FOR PART I, LINE 3C REGARDING THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY. PART III, LINE 8: ST. JUDE CHILDREN'S RESEARCH HOSPITAL DOES NOT CONSIDER THE MEDICARE SHORTFALL A COMMUNITY BENEFIT. THE ARKANSAS MEDICAID COST REPORT IS THE SOURCE USED TO DETERMINE THE AMOUNT IN LINE 6. PART III, LINE 9B: COLLECTION POLICIES ARE THE SAME FOR ALL PATIENTS. ANY LEGAL OBLIGATION OF PAYMENT FOR A PATIENT'S COSTS THAT ARE NOT COVERED BY INSURANCE IS COVERED BY THE GENEROUS ASSISTANCE OF ST. JUDE DONORS WITH THE RESULTS THAT ST. JUDE DOES NOT ASK A PATIENT TO PAY. 'OTHER' COLUMN PART V, SECTION A PHARMACY, ANATOMIC PATHOLOGY LAB, CLINICAL PHARMACOKINETICS LAB, CLINICAL PATHOLOGY LAB PART VI, LINE 2: IN 1962, ST. JUDE CHILDREN'S RESEARCH HOSPITAL OPENED WITH A MISSION TO ADVANCE CURES, AND MEANS OF PREVENTION, FOR PEDIATRIC CATASTROPHIC DISEASES THROUGH RESEARCH AND TREATMENT. IT WAS AT THAT TIME THAT DANNY THOMAS, THE FOUNDER OF ST. JUDE, REALIZED THERE WAS A NEED TO TREAT CHILDREN WITH CATASTROPHIC DISEASES AND THAT NO CHILD SHALL DIE IN THE DAWN OF LIFE.CANCEROVER THE NEXT 5 YEARS, APPROXIMATELY 66,000 CHILDREN IN THE UNITED STATES WILL BE DIAGNOSED WITH CANCER. DESPITE TREATMENT ADVANCES MADE OVER THE PAST THREE DECADES, CANCER REMAINS THE NUMBER ONE CAUSE OF DEATH BY DISEASE AMONG CHILDREN IN THE UNITED STATES AGES 1-19. WHILE CURE RATES HAVE IMPROVED MATERIALLY, THE NUMBER OF CASES HAS GROWN NEARLY 5% OVER THE PAST 20 YEARS AND THOSE WHO SURVIVE FACE CHALLENGES AFTER TREATMENT. INCIDENCE AND MORTALITY RATES ARE AVAILABLE VIA SURVEILLANCE EPIDEMIOLOGY AND END RESULTS (SEER) DATABASE AND WORLD HEALTH ORGANIZATION MORTALITY DATABASE. ST. JUDE MONITORS THE INCIDENCE OF CHILDHOOD CANCER IN THE 172 COUNTIES IN THE LOCAL CATCHMENT AREA AND 334 COUNTIES SURROUNDING THE DOMESTIC AFFILIATES. A CLUSTER ANALYSIS WAS PERFORMED TO BETTER UNDERSTAND THE PROXIMITY OF CHILDREN COMING TO ST. JUDE FOR TREATMENT AND THEN COMPARED WITH CHILDREN'S ONCOLOGY GROUP (COG) CARE COVERAGE (300 MILE RADIUS SURROUNDING EACH COG CENTER) TO LOOK AT WHAT AREAS WITHIN THE UNITED STATES WHERE CHILDREN DO NOT HAVE ACCESS TO RECEIVE TREATMENT FOR CHILDHOOD CANCER. ST. JUDE'S INTERNATIONAL OUTREACH PROGRAM ASSESSES CANCER INCIDENCE AND MORTALITY RATES OUTSIDE OF THE UNITED STATES. CANCER IS EMERGING AS A MAJOR CAUSE OF CHILDHOOD DEATH IN DEVELOPING REGIONS OF ASIA, SOUTH AND CENTRAL AMERICA, NORTHWEST AFRICA AND THE MIDDLE EAST. WHILE IMPROVED THERAPY HAS DRAMATICALLY INCREASED SURVIVAL RATES FOR CHILDREN WITH CANCER OVER THE PAST THREE DECADES, STILL MORE THAN 70% OF THE WORLD'S CHILDREN WITH CANCER DO NOT HAVE ACCESS TO MODERN TREATMENT.HEMATOLOGY MORE THAN 70,000 PEOPLE IN THE UNITED STATES HAVE SICKLE CELL DISEASE (SCD), AND IT IS ESTIMATED MORE THAN 1 MILLION PEOPLE WORLDWIDE SUFFER FROM THE DISEASE. IT IS THE LARGEST GENETIC BLOOD DISORDER IN THE WORLD. ST. JUDE PROVIDES COMPREHENSIVE TREATMENT FOR CHILDREN WITH SCD. ST. JUDE HAS ONE OF THE LARGEST SCD PROGRAMS IN THE COUNTRY, WITH MORE THAN 750 PATIENTS. ST. JUDE HAS SEVERAL LABS THAT PERFORM RESEARCH ON SCD. LOCALLY: IN THE UNITED STATES, SCD AFFECTS MOSTLY AFRICAN AMERICANS, LATINOS, AND PEOPLE OF MEDITERRANEAN DESCENT. APPROXIMATELY 550,000 AFRICAN-AMERICANS RESIDE IN THE MEMPHIS METROPOLITAN AREA. THE LOCAL CATCHMENT AREA ENCOMPASSES 21 COUNTIES IN WESTERN TENNESSEE INCLUDING MEMPHIS WHERE ST. JUDE IS LOCATED. ST. JUDE PROVIDES COMPREHENSIVE TREATMENT AND EDUCATION TO MORE THAN 750 CHILDREN IN THE LOCAL AREA WITH SCD. ALSO, ST. JUDE PROVIDES COMMUNITY OUTREACH, EDUCATION AND SCREENING TO THE LOCAL COMMUNITY. NATIONALLY AND INTERNATIONALLY: ST. JUDE HAS A HISTORY OF DEVELOPING COLLABORATIVE RESEARCH PARTNERSHIPS WITH THE NATIONAL INSTITUTES OF HEALTH AND OTHER INSTITUTIONS THROUGHOUT THE WORLD. SOME OF THESE PARTNERSHIPS HAVE LED TO MAJOR IMPROVEMENTS IN THE TREATMENT OF CHILDREN WITH SCD WHICH HAVE BENEFITED CHILDREN AND ADULTS WITH SCD WORLDWIDE. FOR EXAMPLE, THE PROPHYLACTIC PENICILLIN STUDIES I AND II LED TO SCREENING FOR NEWBORNS WITH SCD AFTER SHOWING THAT GIVING PENICILLIN TO INFANTS HELPED REDUCE THE RISK OF DEATH FROM INFECTION BY 85%. BEFORE THIS STUDY LESS THAN 14 STATES SCREENED FOR SCD. TODAY ALL 50 STATES SCREEN FOR SCD. ST. JUDE WAS THE FIRST TO CURE SCD THROUGH BONE MARROW TRANSPLANTATION (BMT) WHICH REMAINS THE ONLY CURE FOR THE DISEASE. AS A RESULT, HUNDREDS OF CHILDREN AROUND THE WORLD HAVE RECEIVED BMT TO CURE SCD. BECAUSE THIS IS NOT A VIABLE CURE FOR EVERYONE WITH SCD, RESEARCH MUST CONTINUE. WHILE GREAT STRIDES HAVE BEEN MADE IN INCREASING THE LIFESPAN OF CHILDREN WITH SCD, MORE RESEARCH IS NEEDED TO FIND A VIABLE CURE AND/OR TREATMENTS THAT IMPROVE THE QUALITY OF LIFE FOR CHILDREN WITH SCD. IN ADDITION TO PROVIDING MEDICAL CARE, RESEARCH AND EDUCATION FOR SCD, ST. JUDE ALSO PROVIDES CLINICAL SERVICES FOR APPROXIMATELY ONE THOUSAND CHILDREN PER YEAR WITH OTHER NON-MALIGNANT HEMATOLOGICAL DISORDERS. CHILDREN WITH ILLNESSES SUCH AS HEMOPHILIA, APLASTIC ANEMIA, THROMBOSIS, THALASSEMIA, SPHEROCYTOSIS, AND IMMUNE THROMBOCYTOPENIC PURPURA RECEIVE STATE-OF THE-ART CARE FROM ST. JUDE PHYSICIANS AND MEDICAL STAFF.HIVTHE ADOLESCENT MEDICINE TRIALS NETWORK (ATN)-SPONSORED NATIONAL PROJECT, CONNECT TO PROTECT (C2P), HAS BEEN A MAJOR CONTRIBUTION TO THE STRONG COMMUNITY TIES THAT THE ST. JUDE ADOLESCENT TRIALS UNIT HAS ESTABLISHED AND STRENGTHENED OVER THE PAST 5 YEARS. THE CONNECT TO PROTECT MEMPHIS COALITION DEVELOPS SUSTAINABLE POLICIES, PROGRAMS AND PRACTICES FOR THE SOLE PURPOSE OF REDUCING THE NUMBER OF INFECTED INDIVIDUALS IN VULNERABLE POPULATIONS. THE CONNECT TO PROTECT MEMPHIS COALITION INCLUDES 25 AGENCIES REPRESENTING A RICH AND DIVERSE MIX OF REPRESENTATIVES FROM VARIOUS SECTORS IN THE MEMPHIS COMMUNITY, INCLUDING FAITH-BASED, SCHOOL, BUSINESS, CIVIC/COMMUNITY, HOSPITAL, YOUNG ADULT AND HEALTHCARE ORGANIZATIONS. THESE STRATEGIC PARTNERSHIPS HAVE ALLOWED FOR SHARED RESPONSIBILITY IN THE TRANSFORMATION OF OUR COMMUNITIES. THIS IS ESPECIALLY IMPORTANT TO ENSURE OUR EFFORTS ARE DEVELOPED IN A MANNER THAT GUARANTEES SUSTAINABILITY.THE C2P TEAM USED FEDERAL, STATE AND LOCAL RESOURCES TO IDENTIFY AT-RISK YOUTH AND CREATE A PROFILE OF AVAILABLE COMMUNITY RESOURCES. REPRESENTING SEVEN DIFFERENT SECTORS, THIS TEAM COMPARED DISEASE AND RISK RATES WITH SERVICE AVAILABILITY, NEIGHBORHOOD STRENGTHS, AND NEIGHBORHOOD NEEDS TO ZERO IN ON PREVENTION STRATEGIES MOST NEEDED TO PROTECT THE HEALTH OF OUR CITY'S YOUTH. THE C2P MEMPHIS WORK GROUP MEETS QUARTERLY AND HAS HAD 14 COMMITTEE MEETINGS AND 76 SUBCOMMITTEE MEETINGS. THE GROUP HAS IDENTIFIED HIGH-RISK ZIP CODES WITHIN THE COMMUNITY AND AREAS OF HIGH PREVALENCE IN SURROUNDING RURAL AREAS. THE IDENTIFIED ROOT CAUSES, GATHERED THROUGH MIXED METHODS TOOLS-QUANTITATIVE AND QUALITATIVE-HELPED TO SHAPE A STRATEGIC PLAN AND IDENTIFY OPPORTUNITIES FOR IMPLEMENTATION OF STRUCTURAL AND SYSTEMATIC CHANGES. THE COMMUNITY COALITION HAS SUCCESSFULLY COMPLETED 5 STRUCTURAL CHANGE OBJECTIVES AND MORE THAN 25 ACTIONS STEPS TOWARD OUR STRATEGIC PLAN OF ACTION.IN CONJUNCTION WITH THE CONNECT TO PROTECT COALITION, OTHER COMMUNITY INITIATIVES INCLUDE THE STRATEGIC MULTISITE INITIATIVE FOR THE IDENTIFICATION, LINKAGE AND ENGAGEMENT IN CARE OF YOUTH WITH & UNDIAGNOSED HIV INFECTION (SMILE) AND HISPANIC OUTREACH. OUR SMILE OUTREACH STAFF OFFERS INDIVIDUAL SUPPORT SERVICES TO ENSURE LINKAGE AND FULL ENGAGEMENT IN MEDICAL CARE FOR HIV POSITIVE YOUTH AND YOUNG ADULTS AGES 13-24. TO DATE, WE HAVE INITIATED CONTACT WITH APPROXIMATELY 200 NEWLY INFECTED YOUTH AND YOUNG ADULTS. PARTICIPANTS IN THE SMILE PROJECT RECEIVE: ASSISTANCE WITH LINKAGE TO CARE, CASE MANAGEMENT, CRISIS INTERVENTION, AND REFERRALS TO COMMUNITY SERVICES AND RESOURCES. OUR NEWEST INITIATIVE, HISPANIC OUTREACH, FOCUSES ON IDENTIFYING UNDIAGNOSED ASYMPTOMATIC HIV INFECTION IN HISPANIC/LATINO ADOLESCENTS AND YOUNG ADULTS BY USING SOCIAL AND SEXUAL NETWORK-BASED HIV TESTING STRATEGIES FOR REACHING THOSE MOST AT RISK. USE OF THIS APPROACH INCLUDES IDENTIFICATION OF INDIVIDUALS WHO ARE HIV-INFECTED OR INDIVIDUALS WHO ARE AT INCREASED RISK FOR HIV INFECTION WHO ARE THEN ASKED TO IDENTIFY AND REFER OTHERS IN THEIR SOCIAL AND SEXUAL NETWORKS WHO THEY THINK MAY BE AT RISK FOR HIV FOR COUNSELING, TESTING REFERRAL SERVICES. WE ARE BUILDING INROADS INTO THIS COMMUNITY AND STRONG BACKING FROM APPROXIMATELY 8 COMMUNITY PARTNERS THAT SERVE THIS POPULATION.ADDITIONALLY, OUR ESTABLISHED COMMUNITY NETWORKS ALLOW US TO ACCOMPLISH OUTREACH EFFORTS BY FACILITATED PARTNERSHIPS AMONG ORGANIZATIONS THAT SEEK TO DECREASE HIV/SEXUALLY TRANSMITTED INFECTION RATES AND IMPROVE THE OVERALL HEALTH AND WELL-BEING AMONG MEMPHIS AREA YOUTH AND YOUNG ADULTS. THROUGH OUR STRONG COLLABORATIVE RELATIONSHIP WITH MEDICAL AND SOCIAL SERVICE AGENCIES IN THE COMMUNITY WE HAVE SOLIDIFIED OUR COMMITMENT TO THE CAUSE OF HIV EDUCATION AND PREVENTION IN THE COMMUNITY. A QUALIFIED STAFF OF PHYSICIANS, NURSE PRACTITIONERS, SOCIAL WORKERS AND COMMUNITY OUTREACH STAFF PROVIDES HIV EDUCATION AND PREVENTION PRESENTATIONS THROUGHOUT THE COMMUNITY TO VARIOUS SECTORS THAT CATER TO YOUTH AND YOUNG ADULTS. WE HAVE ALSO WORKED WITH VARIOUS SECTORS TO IMPLEMENT INNOVATIVE TESTING STRATEGIES AND BUILD PREVENTATIVE AWARENESS CAMPAIGNS. PART VI, LINE 3: ALL CHILDREN ARE TREATED AT ST. JUDE CHILDREN'S RESEARCH HOSPITAL REGARDLESS OF RACE, RELIGION, OR ABILITY TO PAY. A BILLING SYSTEM IS MAINTAINED FOR EACH PATIENT, BUT BILLS ARE NOT SENT TO ANY PATIENT TREATED IN MEMPHIS AT ST.JUDE. THE HOSPITAL'S FINANCIAL ASSISTANCE POLICY IS COMMUNICATED IN BOTH ENGLISH AND SPANISH. ANY OTHER INTERPRETATIVE INFORMATION NEEDED IS PROVIDED THROUGH ONSITE OR CONTRACTED SERVICES.ALL PATIENTS THAT DO NOT HAVE HEALTH INSURANCE OR ARE EXPECTED TO LOSE THEIR HEALTH INSURANCE ARE REFERRED TO AN ON-SITE FIRSTSOURCE SOLUTIONS UAS, LLC CONSULTANT. THE CONSULTANT CONTACTS THE PATIENT/FAMILY TO SET UP AN INTERVIEW AND COMPLETES A QUESTIONNAIRE TO HELP DETERMINE ELIGIBILITY FOR VARIOUS ASSISTANCE PROGRAMS INCLUDING BUT NOT LIMITED TO TENNCARE/MEDICAID, COVER TN, COVER KIDS, CHIPS, AND SOCIAL SECURITY. PART VI, LINE 4: ST. JUDE CHILDREN'S RESEARCH HOSPITAL HAS BEEN DESCRIBED AS "A HOSPITAL WITHOUT WALLS" BECAUSE THE HOSPITAL'S OUTREACH INCLUDES THE LOCAL MARKET, NATIONAL AFFILIATES AND THE INTERNATIONAL COMMUNITY. THE LOCAL MARKET ENCOMPASSES A 160 MILE-RADIUS OF MEMPHIS, TENNESSEE WITH APPROXIMATELY 27% OF NEW ONCOLOGY PATIENTS RESIDING WITHIN THIS AREA. THE DOMESTIC AFFILIATE PROGRAM EXTENDS THE PROTOCOL-STRUCTURED TREATMENT AND RESEARCH AT ST. JUDE TO CHILDREN BEYOND OUR PHYSICAL WALLS THROUGH CLINICAL, RESEARCH AND ACADEMIC PARTNERSHIPS WITH PEDIATRIC PROGRAMS WITHIN THE US. THE DOMESTIC AFFILIATE PROGRAM IS A NETWORK OF PEDIATRIC HEMATOLOGY-ONCOLOGY CLINICS, HOSPITALS AND UNIVERSITIES UNITED TO EXTEND THE MISSION OF ST. JUDE. THE PHYSICIANS AND STAFF AT THESE SITES WORK IN COLLABORATION WITH THE STAFF OF ST. JUDE TO DELIVER PROTOCOL RELATED CARE TO PEDIATRIC HEMATOLOGY-ONCOLOGY PATIENTS. AFFILIATES ARE CURRENTLY LOCATED IN BATON ROUGE, LA, HUNTSVILLE, AL, JOHNSON CITY, TN, PEORIA, IL, SHREVEPORT, LA, AND SPRINGFIELD, MO. IN ADDITION, ST. JUDE DRAWS APPROXIMATELY 40% OF ITS NEW ONCOLOGY PATIENTS FROM NATIONAL NON-AFFILIATE MARKETS. THREE PERCENT OF NEW ONCOLOGY PATIENTS ARE FROM OUTSIDE THE UNITED STATES AND ITS TERRITORIES. IN ADDITION, ST. JUDE PROVIDES CONSULTATION SERVICES FOR MORE THAN 2000 NATIONAL AND 600 INTERNATIONAL REQUESTS. THE MISSION OF ST. JUDE'S INTERNATIONAL OUTREACH PROGRAM (IOP) IS TO IMPROVE THE SURVIVAL RATE OF CHILDREN WITH CANCER AND OTHER CATASTROPHIC DISEASES WORLDWIDE, THROUGH THE SHARING OF KNOWLEDGE, TECHNOLOGY AND ORGANIZATIONAL SKILLS. THERE ARE AN ESTIMATED 160,000 NEWLY DIAGNOSED CASES OF CHILDHOOD CANCER WORLDWIDE EACH YEAR, AND CANCER IS EMERGING AS A MAJOR CAUSE OF CHILDHOOD DEATH IN THE DEVELOPING REGIONS OF ASIA, SOUTH AND CENTRAL AMERICA, NORTHWEST AFRICA AND THE MIDDLE EAST. WHILE OVER THE PAST 30 YEARS IMPROVED THERAPY HAS DRAMATICALLY INCREASED SURVIVAL RATES FOR CHILDREN WITH CANCER, STILL MORE THAN 70% OF THE WORLD'S CHILDREN WITH CANCER DO NOT HAVE ACCESS TO MODERN TREATMENT. ST. JUDE STRIVES TO ADDRESS THE NEEDS OF THOSE CHILDREN IN COUNTRIES THAT LACK SUFFICIENT RESOURCES AND HELP THEM MANAGE THEIR OWN BURDEN OF CASES EFFECTIVELY. WHILE SICK CHILDREN FROM AROUND THE WORLD HAVE TRAVELED TO OUR HOSPITAL IN MEMPHIS, RECEIVING TREATMENT IN THEIR OWN COUNTRIES IS MORE EFFICIENT AND LESS DISRUPTIVE FOR THEM AND THEIR FAMILIES. BECAUSE OF ST. JUDE'S INTERNATIONAL EFFORTS, WE ARE ABLE TO REACH FAR MORE CHILDREN THAN WOULD EVER BE ABLE TO COME TO MEMPHIS. A BASIC HEALTHCARE INFRASTRUCTURE IS NEEDED TO SUPPORT PEDIATRIC ONCOLOGY PROGRAMS, WHICH IN TURN FURTHER IMPROVES THE DEVELOPMENT OF BASIC HEALTHCARE. AT THE LOCAL LEVEL, THE IOP DEVELOPS PARTNERSHIPS WITH MEDICAL INSTITUTIONS AND FUND-RAISING ORGANIZATIONS AND FACILITATES THE INVOLVEMENT OF OTHER AGENCIES AND ORGANIZATIONS TO SUPPORT KEY PROGRAMS AND THE EDUCATION OF LOCAL PERSONNEL. AT THE REGIONAL LEVEL, THE IOP DEVELOPS PROGRAMS THROUGH THE USE OF TECHNOLOGY. THE PRIMARY GOAL IS TO DEVELOP LOCAL AND REGIONAL SELF-SUFFICIENCY. THIS MODEL RESULTS IN SIGNIFICANT OVERALL IMPROVEMENT IN HEALTHCARE FACILITIES, THE LEVEL OF PRACTICE, THE SELF-CONFIDENCE OF HEALTHCARE PROVIDERS, AND LOCAL COMMUNITY INVOLVEMENT. WE EMPHASIZE THE BUILDING OF REGIONAL EXPERTISE AND DIAGNOSTIC CAPABILITIES, WHICH PROVIDE A CRITICAL MASS OF PROFESSIONALS WHO CONTINUALLY LEARN FROM AND ASSIST EACH OTHER. COST EFFICIENCY IS ALSO REALIZED BECAUSE OF SHARED RESOURCES.ST. JUDE HAS PARTNER SITES ALL AROUND THE WORLD; THERE ARE CURRENTLY 19 OFFICIAL PARTNER SITES IN 14 DIFFERENT COUNTRIES AROUND THE WORLD-BRAZIL, CHILE, CHINA, COSTA RICA, ECUADOR, EL SALVADOR, GUATEMALA, HONDURAS, JORDAN, LEBANON, MEXICO, MOROCCO, PHILIPPINES, VENEZUELA. ST. JUDE HELPS PARTNER MEDICAL INSTITUTIONS DEVELOP TAILORED EVIDENCED-BASED PROTOCOLS FOR TREATING CHILDREN WITH CANCER AND OTHER CATASTROPHIC DISEASES. ST. JUDE PHYSICIANS SERVE AS MENTORS TO PHYSICIANS AT OUR PARTNER SITES AND CONSULT ON DIFFICULT CASES. WE TRAIN NURSES IN BEST PRACTICES IN CLINICAL CARE AND WORK WITH PATHOLOGISTS ON TECHNIQUES FOR ACCURATE DIAGNOSIS. WE ALSO PARTNER WITH LOCAL FUNDRAISING FOUNDATIONS THAT SUPPORT THE MEDICAL PROGRAMS. THIS MODEL HAS PROVEN TO BE HIGHLY EFFECTIVE IN PROVIDING POOR CHILDREN IN DEVELOPING COUNTRIES ACCESS TO MODERN TREATMENT AND CARE.BY SHARING KNOWLEDGE AND TECHNOLOGY WITH THE LOCAL GOVERNMENTS, HEALTHCARE PROVIDERS, AND THE PRIVATE SECTOR IN THESE COUNTRIES, ST. JUDE IS IMPROVING DIAGNOSES AND TREATMENTS TO INCREASE THE SURVIVAL RATES OF CHILDREN ALL ACROSS THE GLOBE.*DELIVERING BROAD BASED EDUCATION AND TRAINING ONSITE AT ST. JUDE, IN EACH SPECIFIC COUNTRY SITE, AND THROUGH THE ST. JUDE CURE4KIDSTM WEB SITE. *BUILDING CAPACITY WITHIN PARTICULAR COUNTRIES FOR TREATMENT, CARE AND RESEARCH.*SUPPORTING TARGETED RESEARCH THAT SEEKS TO UNDERSTAND THE FACTORS UNDERLYING THE EFFICACY OF TREATMENTS WITHIN A COUNTRY'S SPECIFIC CULTURAL, ECONOMIC AND MEDICAL INFRASTRUCTURE CONTEXT. PART VI, LINE 6: ST. JUDE CHILDREN'S RESEARCH HOSPITAL WAS OPENED IN 1962 BY ENTERTAINER DANNY THOMAS, WITH THE EXPRESS PURPOSE OF "IMPROVING CHILD HEALTH THROUGH RESEARCH IN BIOLOGY AND PEDIATRICS." OUR MISSION IS TO ADVANCE CURES, AND MEANS OF PREVENTION, FOR PEDIATRIC CATASTROPHIC DISEASES THROUGH RESEARCH AND TREATMENT. CONSISTENT WITH THE VISION OF OUR FOUNDER DANNY THOMAS, NO CHILD IS DENIED TREATMENT BASED ON RACE, RELIGION OR A FAMILY'S ABILITY TO PAY. OUR VISION IS TO BE THE WORLD LEADER IN ADVANCING THE TREATMENT AND PREVENTION OF CATASTROPHIC DISEASES IN CHILDREN. THIS VISION IS PURSUED BY PROVIDING OUTSTANDING PATIENT CARE; BY CONDUCTING BASIC, TRANSLATIONAL AND CLINICAL RESEARCH DESIGNED TO ELUCIDATE BIOLOGICAL MECHANISMS, UNDERSTAND DISEASE PATHOGENESIS, IMPROVE DIAGNOSIS, ENHANCE TREATMENT OUTCOME, PREVENT DISEASES AND MINIMIZE ADVERSE CONSEQUENCES OF TREATMENT; AND BY EDUCATING HEALTHCARE AND SCIENTIFIC RESEARCH PROFESSIONALS. THROUGH THESE EFFORTS WE SEEK TO CURE AND ENHANCE THE QUALITY OF LIFE FOR AN INCREASING PROPORTION OF CHILDREN WHO COME TO US FOR TREATMENT, AND BY EXPANDING AND SHARING KNOWLEDGE, TO ADVANCE TREATMENT OF CHILDREN WITH CATASTROPHIC DISEASES WORLD-WIDE, WHILE DEVELOPING STRATEGIES TO PREVENT CATASTROPHIC DISEASES IN CHILDREN.ST. JUDE IS A RESEARCH AND CLINICAL INSTITUTION IN WHICH LABORATORY AND CLINICAL RESEARCH IS ORGANIZED SO AS TO ADVANCE THE CARE OF CHILDREN WITH CANCER AND OTHER CATASTROPHIC DISEASES. ITS FOCUS ON PROVIDING OUTSTANDING PATIENT CARE ENSURES THAT THERE IS AN ONGOING EFFORT TO TRANSLATE RESEARCH FINDINGS INTO IMPROVED PATIENT OUTCOME. ST. JUDE HAS AN ACADEMIC FACULTY ENGAGED IN A BROAD SPECTRUM OF RESEARCH THAT INCLUDES THERAPEUTIC TRIALS, INVESTIGATION OF DISEASE PATHOGENESIS AND DISCOVERY-ORIENTED BASIC RESEARCH.HOSPITAL OPERATIONS ARE OVERSEEN BY A BOARD OF GOVERNORS; THE MAJORITY OF THESE VOLUNTEERS ARE NEITHER EMPLOYEES NOR CONTRACTORS OF THE ORGANIZATION, NOR FAMILY MEMBERS THEREOF. THE RESEARCH ACTIVITIES OF THE HOSPITAL ARE REVIEWED ANNUALLY BY A SCIENTIFIC ADVISORY BOARD COMPOSED OF INTERNATIONALLY PROMINENT PHYSICIANS AND SCIENTISTS.ST. JUDE PROVIDED ASSISTANCE TO THE PEDIATRIC COMMUNITY HOSPITAL FOR MEMPHIS AND SURROUNDING VICINITY BY CONTRIBUTING TO THE BUILDING OF A STATE-OF-THE ART NEUROSURGICAL FACILITY FOR TREATING PEDIATRIC PATIENTS INCLUDING ST. JUDE BRAIN TUMOR PATIENTS. THE NEUROSURGICAL FACILITY IS EQUIPPED WITH INTRA-OPERATIVE IMAGING EQUIPMENT (IMRI). WHEN THIS EQUIPMENT WAS SELECTED, ONLY TWO NEUROSURGICAL FACILITIES IN THE UNITED STATES PROVIDED PATIENTS THIS LEVEL OF IMAGING TECHNOLOGY WHICH ALLOWS IMAGING TO TAKE PLACE DURING SURGICAL PROCEDURES. WITH THE IMRI EQUIPMENT SURGEONS CAN MAKE INFORMED DECISIONS DURING THE SURGICAL PROCESS. LIVE WEB CASTING CAPABILITIES ALLOW OTHERS TO VIEW PROCEDURES. ST. JUDE'S ASSISTANCE WITH THIS FACILITY HELPS ASSURE THAT CHILDREN IN THE AREA HAVE ACCESS TO THE BEST NEUROSURGICAL TREATMENT AVAILABLE.ST. JUDE IN COLLABORATION WITH THE GENOME SEQUENCING CENTER AT WASHINGTON UNIVERSITY IN ST. LOUIS HAS EMBARKED ON AN UNPRECEDENTED PROJECT TO SEARCH THE GENETIC LANDSCAPE OF THE HUMAN GENOME AND DISCOVER MUTATIONS THAT DRIVE THE MALIGNANCIES OF CHILDHOOD CANCER. THE TEAM HAS JOINED FORCES TO DECODE THE GENOMES OF MORE THAN 600 CHILDHOOD CANCER PATIENTS WHO HAVE CONTRIBUTED TUMOR SAMPLES. DISCOVERIES RESULTING FROM THIS PROJECT WILL CONTRIBUTE TO FINDING TREATMENTS THAT WILL BE USED BY PHYSICIANS WORLDWIDE TO DEVELOP NEW DIAGNOSTIC TESTS AND A NEW GENERATION OF MORE EFFECTIVE DRUGS TO SAVE THE LIVES OF CHILDREN WITH CANCER. THE THREE-YEAR, $65 MILLION PROJECT WILL HELP SCIENTISTS IDENTIFY THE GENETIC MISSTEPS THAT TURN A WHITE BLOOD CELL INTO A CANCER CELL AND BENEFIT FUTURE CANCER DIAGNOSTICS AND THERAPEUTICS.THE CYCLOTRON (PARTICLE ACCELERATOR) LOCATED AT ST. JUDE IS TECHNOLOGY THAT ENABLES RESEARCHERS TO TRACK THE GROWTH OF CANCER CELLS, PINPOINT THE PRODUCTION OF NEW DNA BY TUMOR CELLS AND STUDY THE HEARTS OF ADULT PATIENTS RETURNING TO ST. JUDE FOR LIFETIME FOLLOW-UP. THE CYCLOTRON HELPS RESEARCHERS BETTER UNDERSTAND CHILDHOOD CANCER BY ENABLING THEM TO PRODUCE NEW, VERY SHORT-ACTING TRACERS.ST. JUDE LEASES, MANAGES AND OPERATES A GOOD MANUFACTURING PRACTICE (GMP) FACILITY WHICH ENGAGES IN THE PRODUCTION OF BIOLOGICS AND DRUGS USED IN RESEARCH. THE GMP OFFERS RESEARCHERS THE RESOURCES NEEDED TO STUDY RARE DISEASES OVERLOOKED BY PHARMACEUTICAL COMPANIES BECAUSE THERE IS LITTLE PROFIT FOR THESE COMPANIES IN STUDYING AND MANUFACTURING DRUGS FOR THE LESSER KNOWN DISEASES. THE FACILITY, OPERATING ACCORDING TO APPROVED FDA STANDARDS, GIVES DOCTORS THE CAPABILITIES NEEDED TO TAILOR TREATMENTS SPECIFICALLY FOR AN INDIVIDUAL CHILD.THE CELL AND TISSUE IMAGING CENTER INCLUDES ELECTRON MICROSCOPY AND LIGHT MICROSCOPY. THE FACILITY PROVIDES INVESTIGATORS ACCESS TO TRANSMISSION ELECTRON MICROSCOPY, CONFOCAL LASER SCANNING MICROSCOPY, MULTIPHOTON MICROSCOPY, IMAGE ANALYSIS, CELL MICROINJECTION AND LIVE CELL IMAGING. THE FEI TECNAI 20 200KV FEG ELECTRON MICROSCOPE, WHICH CAN MAGNIFY AN OBJECT 700,000 TIMES, IS AT THE HEART OF THIS PROGRAM. THE ELECTRON MICROSCOPE INSTRUMENT IS ONE OF ONLY 200 OF ITS TYPE IN THE WORLD. THIS TECHNOLOGY ALLOWS RESEARCHERS TO GET A CLOSER LOOK AT CANCER TO BETTER UNDERSTAND HOW IT GROWS AND SPREADS AND RESPONDS TO THERAPY. USING THE ELECTRON MICROSCOPE, RESEARCHERS LEARN HOW THE CANCER CELLS BREAKAWAY FROM THE TUMOR AND BEGIN TO SPREAD THROUGHOUT THE BODY.PREPARATIONS ARE UNDERWAY TO CONSTRUCT A NEW PATIENT CARE AND RESEARCH BUILDING ON THE ST. JUDE CAMPUS. ONCE COMPLETED, THE FACILITY WILL HOUSE PROTON BEAM RADIATION THERAPY TECHNOLOGY DESIGNED TO DELIVER RADIATION THERAPY FOR TREATING CHILDREN WITH BRAIN TUMORS AND SEVERAL OTHER CHILDHOOD CANCERS. THIS EQUIPMENT WILL ENABLE ST. JUDE TO PROVIDE THIS THERAPY IN A MORE INTEGRATED MANNER TO OUTPATIENTS AND ALLOW OUR RADIATION ONCOLOGISTS TO LEAD THE DEVELOPMENT OF NEW TREATMENTS WITH PROTONS.ALONG WITH OUTSTANDING PATIENT CARE AND RESEARCH, ST. JUDE FOCUSES ON EDUCATING AND TRAINING THE NEXT GENERATION OF DOCTORS, NURSES, RESEARCHERS AND ACADEMIC LEADERS. FROM PROGRAMS FOR HIGH SCHOOL STUDENTS TO THE POST-DOCTORAL LEVEL, THE HOSPITAL PLAYS A MAJOR ROLE IN PREPARING FUTURE LEADERS OF SCIENCE AND MEDICINE. IN ADDITION TO ONSITE EDUCATION, ST. JUDE'S INTERNATIONAL OUTREACH PROGRAM PROVIDES AN EDUCATION AND COLLABORATION WEB SITE, CURE4KIDSTM (WWW.CURE4KIDS.ORG). USE OF THE WEB SITE CONTINUES TO GROW AND NOW HAS MORE THAN 28,000 USERS IN 178 COUNTRIES. THE ONLINE CONTENT HAS BEEN ACCESSED MORE THAN 5 MILLION TIMES SINCE ITS INCEPTION IN 2002.AFRICAN AMERICANS AND HISPANICS COMBINED MAKEUP OVER 65% OF THE MEMPHIS POPULATION. BECAUSE OF THE LARGE NUMBER OF RESIDENTS WHO ARE OF AFRICAN OR HISPANIC DECENT AND A REPRESENTATIVE NUMBER OF PEOPLE OF MIDDLE EASTERN DECENT, THE NUMBER OF FAMILIES AFFECTED BY SICKLE CELL DISEASE (SCD) IS HIGH IN THE MEMPHIS COMMUNITY. AS THE ONLY PEDIATRIC SICKLE CELL CENTER IN THIS REGION, ST. JUDE TREATS MOST CHILDREN WITH SCD IN THIS AREA. IN CONJUNCTION WITH MEMPHIS CITY SCHOOLS, ST. JUDE HOLDS KNOW YOUR SICKLE STATUS TRAINING SESSIONS TO TEACH STUDENTS AND SPORTS MANAGERS TO RECOGNIZE THE ONSET OF SCD SYMPTOMS AND HOW TO RESPOND OR HELP STUDENTS WITH SCD MANAGE THEIR SYMPTOMS. ST. JUDE'S SICKLE CELL CENTER'S COMMUNITY FOCUS IS THE ENHANCEMENT OF PUBLIC AWARENESS ABOUT SCD AND OTHER HEMOGLOBINOPATHIES, AS WELL AS, THE AVAILABILITY OF COUNSELING AND TREATMENT SERVICES. ST. JUDE DOES THIS THROUGH A NUMBER OF ADVOCACY PROGRAMS THAT COORDINATE WITH LOCAL SCHOOL SYSTEMS AND COMMUNITY HEALTHCARE AGENCIES. VIA THE CONNECT2PROTECT PROGRAM, ST. JUDE COLLABORATES WITH COMMUNITY ORGANIZATIONS WHICH INCLUDE CHURCHES, OTHER HEALTHCARE ORGANIZATIONS AND CIVIC GROUPS TO RAISE AWARENESS ABOUT THE NEED TO PREVENT THE SPREAD OF HIV/AIDS. THE PRIMARY TARGET FOR THIS PROGRAM IS THE AFRICAN AMERICAN COMMUNITY.ST. JUDE'S CANCER EDUCATION PROGRAM FOR SCHOOL STUDENTS TEACHES HEALTHY EATING AND EXERCISE HABITS AS WELL AS DISCOURAGES SMOKING.ST. JUDE'S TOLL-FREE QUITLINE IS AVAILABLE TO ANYONE WHO HAS BEEN TREATED FOR PEDIATRIC CANCER IN ORDER TO ENCOURAGE SURVIVORS TO KICK THE SMOKING HABIT. CALLERS CAN ACCESS COUNSELORS TO RECEIVE SUPPORT AND TOOLS TO SUSTAIN THEIR EFFORTS.THE FUNDRAISING SOURCE FOR ST. JUDE IS ALSAC WHICH RAISES FUNDS SOLELY FOR THE HOSPITAL. BECAUSE OF THE HOSPITAL'S MISSION OF FINDING TREATMENTS FOR PEDIATRIC CANCERS, PEOPLE NATIONWIDE CONTRIBUTE VIA THOUSANDS OF FUND RAISING EFFORTS. ALSAC RAISED $729 MILLION IN FISCAL YEAR 2011 TO MEET ST. JUDE'S OPERATING COST. VOLUNTEERS ENHANCE THE QUALITY OF PATIENT CARE BY PARTNERING WITH CLINICAL STAFF TO PROVIDE THAT ADDITIONAL PERSONAL TOUCH. VOLUNTEERS ALSO HELP ENSURE A SAFE ENVIRONMENT. THEY PROVIDE CARE AND CONCERN AND A LISTENING EAR FOR FAMILIES AT A TIME WHEN THEY NEED IT MOST. THEY ARE VITAL AMBASSADORS BETWEEN THE HOSPITAL AND COMMUNITY. X X X X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 RICHARD C SHADYAC JR 0 476678 0 0 0 1242 0 21645 0 16055 0 515620 0 0 WILLIAM E EVANS 686756 0 0 0 137277 0 26950 0 12787 0 863770 0 0 0 JAMES R DOWNING 594640 0 0 0 118969 0 26950 0 14090 0 754649 0 0 0 MICHAEL C CANARIOS 345061 0 0 0 17810 0 51063 0 16561 0 430495 0 0 0 MICHAEL B KASTAN 542553 0 0 0 43627 0 65610 0 14119 0 665909 0 0 0 JOSEPH H LAVER 557924 0 0 0 16413 0 53450 0 14119 0 641906 0 0 0 LARRY E KUN 619239 0 10000 0 105701 0 26950 0 16103 0 777993 0 0 0 GEORGE B BIKHAZI 461862 0 10000 0 8461 0 26950 0 12790 0 520063 0 0 0 ANDREW DAVIDOFF 500517 0 10000 0 21420 0 71500 0 13951 0 617388 0 0 0 STEPHEN J SHOCHAT 488007 0 0 0 15718 0 26950 0 15382 0 546057 0 0 0 LESLIE L ROBISON 453825 0 10000 0 2917 0 26950 0 13771 0 507463 0 0 0 PART I, LINE 1A FIRST CLASS OR CHARTER TRAVEL: TWO CHARTER FLIGHTS WERE SCHEDULED FOR MULTIPLE EMPLOYEES, INCLUDING ONE OFFICER, TO ATTEND WORKING SESSIONS AT A COLLABORATING PARTNER SITE. THE EXPENSE WAS NOT TREATED AS COMPENSATION TO THE OFFICER. TRAVEL FOR COMPANIONS: FAMILY MEMBER OF ONE OFFICER AND AN EMPLOYEE OF THE HOSPITAL, TRAVELS ON HOSPITAL BUSINESS AS REQUIRED BY THE POSITION. TRAVEL EXPENSES ARE REIMBURSED UNDER AN ACCOUNTABLE PLAN AND NOT RECORDED AS COMPENSATION. TAX INDEMNIFICATIONS AND GROSS UP PAYMENTS: FOUR OFFICERS WERE REIMBURSED GROSS UP DEPENDENT TUITION WHICH IS INCLUDED AS COMPENSATION TO THE OFFICERS. HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES: ONE OFFICER IS REIMBURSED ANNUALLY FOR COUNTRY CLUB DUES. THESE DUES ARE TREATED AS COMPENSATION TO THE OFFICER. PART I, LINE 4B WILLIAM E. EVANS, $117,693.00; JAMES R. DOWNING, $74,340.00; MICHAEL C. CANARIOS, $24,112.90; MICHAEL B. KASTAN, $38,660.00; JOSEPH H. LAVER, $26,500.00; LARRY E. KUN, $101,345.00; ANDREW DAVIDOFF, $44,550.00 SUPPLEMENTAL INFORMATION PART III PART II: RICHARD C. SHADYAC, JR. SERVES AS A VOTING DIRECTOR OF THE BOARD OF ST.JUDE. MR.SHADYAC IS EMPLOYED AS AN OFFICER OF ALSAC A RELATED ORGANIZATION TO ST.JUDE. THE COMPENSATION SHOWN IN COLUMNS (B), (C), (D) AND (E) WAS PAID TO MR. SHADYAC BY ALSAC FOR HIS DUTIES AS CEO OF ALSAC. THE HEALTH EDUCATIONAL & HOUSING FACILITY BOARD OF THE COUNTY OF SHELBYTN 521283414 821697XJ3 2006-12-21 250725271 $130.7 MILLION FOR CONSTRUCTION OF INTEGRATED PATIENT CARE AND RESEARCH 0 0 0 16258048 252012996 3026125 1658551 2188865 129840961 115298494 2008 0 1 1 1 0 0 0 1 1 0.00460 0.00460 1 0 0 0 0 0 0 FACILITY; 120 MILLION TO ADVANCE REFUND 1999 SERIES ISSUE. PART II, LINE 3, TOTAL PROCEEDS OF ISSUE INCLUDE INVESTMENT EARNINGS IN THE AMOUNT OF $1,278,726. SHAKER RECRUITMENT ADVERTISING AND COMMUNICATIONS ENTITY MORE THAN 35% OWNED BY DIRECTORS JOSEH G. SHAKER AND ROBERT A. BREIT 559583 ADVERTISING 0 MARY RELLING FAMILY MEMBER OF WILLIAM E. EVANS, DIRECTOR/CEO AND EX-OFFICIO DIRECTOR 366228 EMPLOYMENT 0 RACHEL LAVER FAMILY MEMBER OF JOSEPH H. LAVER, EVP/CLINICAL DIRECTOR 17905 EMPLOYMENT 0 SUSANNA DOWNING FAMILY MEMBER OF JAMES R. DOWNING, EVP/SCIENTIFIC DIRECTOR 32319 EMPLOYMENT 0 FORM 990, PART VI, SECTION A, LINE 2 FAMILY RELATIONSHIP AMONG DIRECTORS: JOSEPH S. AYOUB, JR. AND PAUL J. AYOUB; FRED P. GATTAS, III AND FRED P. GATTAS, JR.; CAMILLE F. SARROUF, SR. AND CAMILLE F. SARROUF, JR.; GEORGE A. SIMON II AND PAUL SIMON, TERRE THOMAS AND TONY THOMAS; ROBERT A. BREIT AND JOSEPH G. SHAKER BUSINESS RELATIONSHIP AMOUNG DIRECTORS: ROBERT BREIT AND JOSEPH G. SHAKER FORM 990, PART VI, SECTION A, LINE 4 1. THE AUDIT COMMITTEE CHARTER NOW STATES THAT A QUORUM NECESSARY FOR CONDUCTING BUSINESS SHALL BE 1/3 OF THE VOTING MEMBERS FOR THE COMMITTEE. 2. THE AUDIT COMMITTEE CHARTER NOW STATES THAT MATTERS SHALL BE DETERMINED BY A MAJORITY VOTE OF THE MEMBERS PRESENT FOR ANY MEETING. 3. THE AUDIT COMMITTEE CHARTER NO LONGER INCLUDES REFERENCE TO REVIEWING THE EFFECTIVENESS OF THE CORPORATE COMPLIANCE PROGRAM OR OVERSIGHT ON THE CORPORATE COMPLIANCE OFFICER AND THE COMPLIANCE FUNCTION IN THE GOVERNANCE RESPONSIBILITIES OF THE COMMITTEE. THE LEGAL AND BYLAWS COMMITTEE PROVIDES OVERSIGHT OF THE CORPORATE COMPLIANCE PROGRAM, CORPORATE COMPLIANCE OFFICE, AND COMPLIANCE FUNCTION. 4. THE AUDIT COMMITTEE CHARTER MORE CLEARLY DEFINES THAT THE AUDITED FINANCIAL STATEMENTS ARE DISTRIBUTED TO THE ENTIRE BOARD, MANAGEMENT REPRESENTATION LETTERS ARE REVIEWED BY THE AUDIT COMMITTEE, DISTRIBUTED TO THE BOARD OFFICERS, AND MADE AVAILABLE UPON REQUEST TO ANY BOARD MEMBER. 5. THE AUDIT COMMITTEE CHARTER MORE CLEARLY DEFINES THAT THE COMMITTEE'S GOVERNANCE INCLUDES REPORTS RECEIVED FROM REGULATORS THAT MAY HAVE A MATERIAL IMPACT ON THE FINANCIAL STATEMENTS. 6. THE AUDIT COMMITTEE CHARTER MORE CLEARLY DEFINES THAT REPORTS REGARDING ACCOUNTING, INTERNAL CONTROL, AND AUDITING MATTERS RECEIVED FROM THE CONFIDENTIAL ANONYMOUS REPORTING MECHANISM ARE ROUTED THROUGH THE SVP AND CHIEF LEGAL OFFICER TO THE COMMITTEE. 7. THE AUDIT COMMITTEE CHARTER DEFINES THE RESPONSIBILITY OF THE COMMITTEE TO RECOMMEND TO THE BOARD OF GOVERNORS THE STRUCTURE OF THE INTERNAL AUDIT DEPARTMENT. 8. THE AUDIT COMMITTEE CHARTER MORE CLEARLY DEFINES THAT THE COMMITTEE IS TO CONSIDER ANNUALLY THE PUBLIC ACCOUNTANT RETENTION AND PARTNER ROTATION. 9. THE AUDIT COMMITTEE CHARTER MORE CLEARLY DEFINES THAT THE COMMITTEE IS TO ENSURE THAT CONFLICT OF INTEREST HAS BEEN MANAGED WITH RESPECT TO THE EXTERNAL AUDITOR. 10. THE AUDIT COMMITTEE CHARTER WAS EDITED TO REMOVE REFERENCES TO SPECIFIC YEARS AND BUDGET AMOUNTS FOR EXTERNAL AUDITOR AND INTERNAL AUDIT DEPARTMENT. 11. THE AUDIT COMMITTEE CHARTER MORE CLEARLY DEFINES THAT INTERNAL AUDIT HAS A SOLID LINE (FUNCTIONAL REPORTING) TO THE BOARD OF GOVERNORS AND A DOTTED LINE (ADMINISTRATIVE REPORTING) TO THE SVP AND CHIEF FINANCIAL OFFICER. FORM 990, PART VI, SECTION B, LINE 11 IN FEBRUARY OF EACH YEAR, THE AUDIT COMMITTEE AND OFFICERS OF THE BOARD ARE PROVIDED WITH A DRAFT COPY OF THE FORM 990 AND ALL REQUIRED SCHEDULES. THE AUDIT COMMITTEE MEETS WITH ITS TAX PREPARER TO REVIEW THE DRAFT FORM 990 BEFORE IT IS FILED WITH THE IRS. ADDITIONALLY THE COMPENSATION COMMITTEE OF THE BOARD IS PROVIDED WITH A DRAFT COPY OF THE COMPENSATION SECTIONS OF THE FORM 990 FOR REVIEW BEFORE IT IS FILED WITH THE IRS. EACH VOTING MEMBER OF THE BOARD IS PROVIDED WITH A FINAL COPY OF THE FORM 990 AND ALL REQUIRED SCHEDULES BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C NEW BOARD MEMBERS ARE GIVEN A COPY OF THE CONFLICTS OF INTEREST POLICY, COMPLETE THE ORGANIZATION'S CONFLICTS OF INTEREST DISCLOSURE FORM AND RECEIVE TRAINING ON CONFLICTS OF INTEREST. THERE IS A CONFLICTS OF INTEREST COMMITTEE OF THE BOARD OF DIRECTORS THAT REVIEWS THE ANNUAL CONFLICTS OF INTEREST DISCLOSURE STATEMENTS THAT ARE COMPLETED BY EACH BOARD MEMBER AND DISCUSSES AND RESOLVES CONFLICTS OF INTEREST WITH APPEAL TO THE FULL BOARD. IN ADDITION TO THE CONFLICTS OF INTEREST COMMITTEE, THE ORGANIZATION HAS A COMPLIANCE OFFICER. AMONG OTHER THINGS, THE COMPLIANCE OFFICER CONDUCTS ANNUAL TRAINING FOR ALL EMPLOYEES ON CONFLICTS OF INTEREST. CERTAIN EMPLOYEES ANNUALLY COMPLETE A CONFLICTS OF INTEREST DISCLOSURE FORM WHICH IS REVIEWED BY THE COMPLIANCE OFFICER. CONFLICTS OF INTEREST OF EMPLOYEES ARE HANDLED BY THE COMPLIANCE OFFICER WITH INVOLVEMENT FROM THE BOARD AS APPROPRIATE. DEPENDING UPON THE FACTS AND CIRCUMSTANCES OF THE CONFLICT, POTENTIAL RESTRICTIONS RANGE FROM PROHIBITING A TRANSACTION TO PROHIBITING SOMEONE FROM PARTICIPATING IN A DELIBERATION OR TRANSACTION TO DISCLOSURE TO THE BOARD OF THE CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD COMMISSIONS BIANNUAL THIRD PARTY SALARY SURVEYS TO DETERMINE COMPENSATION FOR THE FOLLOWING OFFICERS: CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, SCIENTIFIC DIRECTOR, CANCER CENTER DIRECTOR, CLINICAL DIRECTOR. ALL CHANGES TO SALARY FOR THE OFFICERS ARE APPROVED BY THE BOARD. THE LAST REVIEW WAS COMPLETED IN 2011. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE NOT AVAILABLE FOR PUBLIC INSPECTION. FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. AVG HOURS DEVOTED TO RELATED ORG(S) WHEN RELATED COMP IS REPORTED: FORM 990, PART VII: RICHARD C. SHADYAC, JR. SERVES AS A VOTING DIRECTOR ON THE BOARD OF ST. JUDE. MR. SHADYAC IS EMPLOYED AS AN OFFICER OF ALSAC, A RELATED ORGANIZATION TO ST. JUDE. THE COMPENSATION SHOWN IN COLUMN (E) WAS PAID TO MR. SHADYAC BY ALSAC FOR HIS DUTIES AS CEO OF ALSAC. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 169,320. CHANGE IN INTEREST IN UNRESTRICTED NET ASSETS ALSAC 308,964,137. CHANGE IN INTEREST IN NET ASSET OF ALSAC 135,530,676. TOTAL TO FORM 990, PART XI, LINE 5: 444,664,133. 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