Melmark Inc.

“Rita m. Gardner, president/ceo, and frank bird, chief clinical officer, have a family relationship.”

“A new provision was added that reserves certain major governance powers exclusively to melmark services as the "sole member," which includes the powers to elect and remove directors and officers of the affiliates, to amend the bylaws and articles of incorporation of the affiliates, and to dissolve, merge, or liquidate the affiliates or to establish additional affiliates. The number of board members, minimum and maximum, was adjusted and term limits were established. It also established bi-annual board performance reviews under the direction of the nominating and governance committee of melmark services and established expectations for board attendance.”

“Melmark services is the sole member of melmark, inc.”

“Melmark services as the sole member of melmark, inc. Does not retain specific review and approval powers, except for amendments to governing instruments such as articles or bylaws.”

“The form 990 is prepared by our independent auditors and reviewed by the president/ceo and vp/cfo to ensure accuracy in reporting. The form 990 is then distributed to the entire board for review prior to filing.”

“Conflicts are disclosed and reported annually along with the policy statement. Where there is a conflict, the member would recuse themselves from any related board action. In addition, senior management regularly review the relationship to ensure that their is no inurement, an impermissbale transaction or an excess benefit transaction.”

“Melmark understands its responsibility to ensure that its executive compensation program is appropriate in view of its mission and tax exempt status. To this end, the board executive compensation committee, comprised of entirely disinterested, non-executive members who derive no economic benefit from the organization, retained an independent, authoritative, external consultant to obtain data on competitive and reasonable executive pay practices for all corporate officers. This compensation study considers numerous factors including the compensation paid by similar organizations, both exempt and taxable, for equivalent positions in the same geographic area; the organization's need for particular skills and credentials for the position; the uniqueness of the person's background, education, training, experience, and responsibilities; the size and complexity of the organization's budget and assets; the number of employees; the person's prior compensation arrangements; the person's job performance and tenure with the organization; and the number of hours the person spends performing his or her job. The consultant apprises the board on applicable irs regulations and the board documents all discussion, decision making and the final vote regarding executive compensation. For other key employees, a compensation study is completed by senior human resources staff on a regular basis, assessing the same factors (comparability, credentials, experience, etc.) with the president/ceo (in consultation with executive staff) making the final decision regarding melmark's authorized salary range for the position. As with the executive compensation plan, all supporting data, discussion and the final disposition is documented.”

“The organization makes their governing documents, conflict of interest policy and financial statements available upon request for the same period of disclosure as set forth in section 6104(d).”

“Change in fair value of interest rate swaps -476,542. Beneficial interest in assets held by affiliate 108,681.”

“In addition to providing charity care for three (3) long term residents at an annual cost of nearly $414,000, melmark is actively in involved in numerous community outreach and professional education and training activities. In addition, melmark benefits from a tremendous group of volunteers that provide many hours of service and support to the organization. Melmark's leading community ambassadors are the "joybells", a delightful and talented bell choir group comprised of adults with intellectual disability, many of whom have been residents at melmark for over 36 years. The joybells have performed more than 1,500 concerts since their inception in 1970. Those performances include an appearance this past year (september 2015) at eakins oval during pope francis' visit to philadelphia for the world meeting of families; the chamber orchestra of philadelphia at the kimmel center, during which more than 2,000 audience members witnessed the musical talents of adults with intellectual disabilities; a performance at a philadelphia phillies game, with more than 40,000 audience members; and, over the past, concerts at the white house and the pennsylvania governor's mansion. Melmark is widely regarded as a leading provider in both the philadelphia & boston areas, in providing both community outreach to families of the developmentally disabled and professional education and training to those in our field. Melmark's widely published and highly accomplished professionals are typically involved in 50 to 60 presentations each year. Community outreach activities address issues related to children and young adults with autism and improving life at school and home. Melmark's expert speaker series provides professional education and training on a wide range of clinical and applied behavioral analysis (aba) topics and is open to parents, professional colleagues and area college students pursuing a career in this field. Over the past year, over 4,000 service hours were provided by nearly 675 volunteers. Whether they are decorating for the holiday season, organizing fundraisers or creating fun events for the children and adults melmark serves, volunteers make an incredible impact on lives of all at melmark. Volunteers include corporate partners, church and community groups, area high school students and many long term volunteers committed to actively participating in carrying out melmark's mission. In addition, many melmark residents also volunteer in the community.”