Kateri Residence

“The organization has a management agreement for certain administrative and consulting services with catholic health care system d/b/a archcare. Catholic health care system shall provide human resources, it services, finance services, legal services, compliance, and supply chain management to the organization. Annmarie covone and scott larue (officers of the filing organization) were paid by catholic health care system. Their 2013 compensation is reported in part vii, section a and schedule j, part ii. Catholic health care system was paid $1,908,940 in 2013 for these services.”

“The sole "member" is catholic health care system d/b/a archcare.”

“The sole "member" has the right to appoint and remove the members of the board of trustees, appoint the chairman of the board, amend the by-laws and certificate of incorporation and approve substantial transactions.”

“The sole "member" has the right to amend the by-laws and certificate of incorporation and approve substantial transactions.”

“Kateri residence has its form 990 prepared by an outside accounting firm and has established the following review process to ensure that the information reported is complete and accurate. When the form 990 has been prepared, reviewed by management and is ready to be filed with the internal revenue service, it is electronically sent to the board members of the organization for any comments. Any comments are then grouped, summarized and provided to the outside accountants. Each issue is documented and addressed until the return is finalized and approved for filing.”

“The policy on conflicts of interest is designed to provide guidance to all members of the board, the officers of the organization, and to all persons employed by the organization. A board member or officer shall disclose any conflict of interest of which he or she has knowledge: (a) prior to voting on or otherwise discharging his or her duties with respect to any matter involving the conflict which comes before the board or any committee of the board; (b) prior to entering into any contract or transaction involving the organization; (c) as soon as possible after the board member or officer shall learn of a conflict of interest in any other context. Disclosure of the material facts surrounding the board member or officer's conflict of interest shall be made to the secretary of the board of managers or, in the case of a committee, to the chairperson of that committee (who shall notify the secretary). The secretary or committee chairperson shall inform the other members of the board or committees prior to any action thereon. Failure to disclose adequately a potential or actual conflict of interest shall constitute cause for removal from the board. Following receipt of information concerning a contract or transaction involving a potential conflict of interest, the board shall consider the material facts concerning the proposed contract or transaction, including the process by which the decision was made to recommend entering into the arrangement on the terms proposed. (a) an interested person may make a presentation at the board or committee meeting, but after such presentation, he or she shall leave the meeting during the discussion of, and vote on, the transaction or arrangement that results in the conflict of interest. An interested board member may not be counted in determining the presence of a quorum at a meeting of the board or committee at which discussion or a vote on the transaction or arrangement takes place. (b) an interested board member or officer shall not use personal influence with regard to the board's determination that a conflict exists or the board's vote on the matter. (c) if appropriate, the chairperson shall appoint a disinterested person or a committee of the board to conduct an assessment of fair market value for a particular transaction, or to investigate alternatives to the proposed transaction or arrangement. (d) the board shall approve only those contracts or transactions in which the terms are fair and reasonable to the organization and the arrangements are consistent with the best interests of the organization. The minutes of the board and of all committees with board delegated powers shall contain the following with regard to consideration of any matter involving a conflict of interest: (a) the names of the persons who disclosed or otherwise were found to have a financial or other interest in connection with an actual or possible conflict of interest, the nature of the conflict of interest, any action taken to determine whether a conflict of interest was present, and the board's or committee's decision as to whether a conflict of interest in fact existed; (b) the names of the persons who were present for discussion and votes relating to the transaction or arrangement, a summary of the content of the discussion, including consideration of alternatives to the proposed transaction or arrangement and the nature of and source of any data relied upon in making an assessment of fair market value, and a record of any votes taken in connection therewith; and (c) in any case when the board approves an arrangement or transaction involving a conflict of interest, the minutes of the meeting shall set forth the basis for the board's decision. An employee of the organization with a potential conflict of interest in a particular matter shall promptly and fully disclose the potential conflict to his or her supervisor. The employee shall thereafter refrain from participating in any decisions relating to the matter a”

“The corporation undertakes a rigorous process to ensure that its executive compensation is reasonable and competitive. Toward that end, the board of trustees has a compensation committee of independent persons that have no personal interest in any proposed compensation arrangement. In 2008, the board engaged an independent compensation consultant who conducted independent research and utilized a wide range of industry data to develop comparability or benchmarking data for appropriate levels of compensation for top management, officers, and key employees. In addition, the consultant created a compensation structure for all other positions (non-union). This structure is reviewed every three years. The consultant reviews executive compensation annually and reviews these results with the compensation committee. The consultant projected the data for the following three years for each salary level. The compensation committee, taking the consultant's recommendations under advisement, held a meeting at which contemporaneous minutes were kept and at that meeting determined to make recommendations to the board of trustees. The board of trustees then considered and approved the recommendations of the compensation committee, which approval was recorded in the minutes of the meeting of the board of trustees.”

“The organization makes its form 990 and form 1023 available for public inspection as required under section 6104 of the internal revenue code. The return is posted on guidestar.org and other similar types of websites. In addition, the financial statements, conflict of interest policy, articles of incorporation, form 990, form 1023, and by-laws are also available upon written request or by calling the organization directly. The organization also files an annual cost report with the new york state department of health which contains financial statements and related note disclosures. This cost report is available to the public upon request.”

“In august 2013, the organization sold its nursing home operations and ceased providing services to patients.”

“Consulting: program service expenses 220,297. Management and general expenses 161,306. Fundraising expenses 0. Total expenses 381,603. Collection fees: program service expenses 0. Management and general expenses 63,992. Fundraising expenses 0. Total expenses 63,992. Dasny fees: program service expenses 0. Management and general expenses 12,669. Fundraising expenses 0. Total expenses 12,669. Nursing fees: program service expenses 228,682. Management and general expenses 0. Fundraising expenses 0. Total expenses 228,682. Physician fees: program service expenses 80,559. Management and general expenses 0. Fundraising expenses 0. Total expenses 80,559. Therapist: program service expenses 2,282,387. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,282,387. Engineering fees: program service expenses 298,251. Management and general expenses 0. Fundraising expenses 0. Total expenses 298,251. Billing services: program service expenses 0. Management and general expenses 305,500. Fundraising expenses 0. Total expenses 305,500. Temporary services: program service expenses 85,701. Management and general expenses 0. Fundraising expenses 0. Total expenses 85,701. Food services: program service expenses 374,010. Management and general expenses 0. Fundraising expenses 0. Total expenses 374,010. Security: program service expenses 182,082. Management and general expenses 0. Fundraising expenses 0. Total expenses 182,082. Housekeeping: program service expenses 243,072. Management and general expenses 0. Fundraising expenses 0. Total expenses 243,072. Laundry: program service expenses 449,230. Management and general expenses 0. Fundraising expenses 0. Total expenses 449,230. Laboratory: program service expenses 112,715. Management and general expenses 0. Fundraising expenses 0. Total expenses 112,715.”

“Pension liability adjustment 905,827. Equity transfers to related parties -16,582,264.”

“The organization has a committee that assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant. This process did not change from the prior year.”