Civic Intelligence

Creative Testing Solutions

990 • Fiscal year 2016 • EIN 27-1120123

Jan 01, 2016 to Dec 31, 2016 • Filed on May 09, 2017

6210 East Oak StreetScottsdale, AZ 85257

(602) 343-7016

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

43rd percentile

0.26x

Higher debt load relative to assets than 43% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2016

Liabilities / Revenue

16th percentile

0.13x

Higher debt load relative to revenue than 16% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2016

Net Margin

67th percentile

7.4%

Higher net margin than 67% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2016

Top Officer Pay

75th percentile

$874,177

Higher top officer pay than 75% of similar nonprofits.

Top officer pay equals 0.4% of source-year revenue.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2016

Asset Growth

92nd percentile

26%

Faster asset growth than 92% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2015 to 2016

Revenue Growth

63rd percentile

6.2%

Faster revenue growth than 63% of similar nonprofits.

2016 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2015 to 2016

Assets

Up

$119,277,331

Up $24,301,120 (+26%) from 2015

Net Assets

Up

$88,040,687

Up $20,025,466 (+29%) from 2015

Liabilities

Up

$31,236,644

Up $4,275,654 (+16%) from 2015

Revenue

Up

$240,192,640

Up $14,016,122 (+6.2%) from 2015

Expenses

Up

$222,512,519

Up $18,976,245 (+9.3%) from 2015

Net Income

Down

$17,680,121

Down $4,960,123 (-22%) from 2015

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$300M$200M$100M$0Assets 2010: $49,782,586Liabilities 2010: $20,052,373Net Assets 2010: $29,730,2132010Assets 2011: $63,954,901Liabilities 2011: $21,779,224Net Assets 2011: $42,175,6772011Assets 2013: $73,380,094Liabilities 2013: $22,328,470Net Assets 2013: $51,051,6242013Assets 2014: $90,812,035Liabilities 2014: $23,909,281Net Assets 2014: $66,902,7542014Assets 2015: $94,976,211Liabilities 2015: $26,960,990Net Assets 2015: $68,015,2212015Assets 2016: $119,277,331Liabilities 2016: $31,236,644Net Assets 2016: $88,040,6872016Assets 2018: $165,158,769Liabilities 2018: $64,862,780Net Assets 2018: $100,295,9892018Assets 2019: $186,188,612Liabilities 2019: $45,394,951Net Assets 2019: $140,793,6612019Assets 2020: $151,303,891Liabilities 2020: $79,523,784Net Assets 2020: $71,780,1072020Assets 2021: $144,759,608Liabilities 2021: $65,863,453Net Assets 2021: $78,896,1552021Assets 2022: $202,650,150Liabilities 2022: $87,822,725Net Assets 2022: $114,827,4252022Assets 2024: $238,533,836Liabilities 2024: $95,429,009Net Assets 2024: $143,104,8272024

Highlighted filing

2016

Assets$119,277,331
Liabilities$31,236,644
Net Assets$88,040,687

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$600M$400M$200M$0Expenses 2010: $185,733,3742010Expenses 2011: $189,150,0092011Revenue 2013: $225,048,396Expenses 2013: $220,974,994Net Income 2013: $4,073,4022013Revenue 2014: $218,449,490Expenses 2014: $203,295,257Net Income 2014: $15,154,2332014Revenue 2015: $226,176,518Expenses 2015: $203,536,274Net Income 2015: $22,640,2442015Revenue 2016: $240,192,640Expenses 2016: $222,512,519Net Income 2016: $17,680,1212016Revenue 2018: $434,869,430Expenses 2018: $404,083,640Net Income 2018: $30,785,7902018Revenue 2019: $409,465,869Expenses 2019: $370,122,158Net Income 2019: $39,343,7112019Revenue 2020: $405,650,488Expenses 2020: $374,330,027Net Income 2020: $31,320,4612020Revenue 2021: $369,133,933Expenses 2021: $327,070,326Net Income 2021: $42,063,6072021Revenue 2022: $438,773,486Expenses 2022: $396,704,355Net Income 2022: $42,069,1312022Revenue 2024: $495,397,605Expenses 2024: $438,196,436Net Income 2024: $57,201,1692024

Highlighted filing

2016

Revenue$240,192,640
Expenses$222,512,519
Net Income$17,680,121
Jump To
Filing Snapshot
Filing Period
Jan 1, 2016 to Dec 31, 2016
Signed
May 9, 2017
Return Version
2016v3.0
Gross Receipts
$247,517,643
Mission and Program Overview

Mission

To provide exceptional customized laboratory testing services to support the hospitals and other healthcare organizations with their life saving missions.

Balance Sheet Detail
LineBeginningEndChange
Assets
Investments in Publicly Traded Securities$32,011,699$45,569,815▲ $13,558,116
Accounts Receivable$34,031,089$40,495,401▲ $6,464,312
Cash and Non-Interest-Bearing Accounts$19,103,408$22,882,786▲ $3,779,378
Land, Buildings, and Equipment, Net$7,129,598$7,806,358▲ $676,760
Inventories for Sale or Use$1,961,027$1,864,149▼ $96,878
Prepaid Expenses and Deferred Charges$639,390$558,822▼ $80,568
Savings and Temporary Cash Investments$0$0→ $0
Other Notes and Loans Receivable, Net$0$0→ $0
Pledges and Grants Receivable$0$0→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Other Securities$0$0→ $0
Investments Program Related$0$0→ $0
Intangible Assets$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$94,976,211$119,277,331▲ $24,301,120
Other Assets Total$100,000$100,000→ $0
Liabilities
Accounts Payable and Accrued Expenses$26,960,990$31,236,644▲ $4,275,654
Grants Payable$0$0→ $0
Mortgage Notes Payable Secured by Investment Property$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Other Liabilities$0$0→ $0
Deferred Revenue$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$26,960,990$31,236,644▲ $4,275,654
Net Assets / Fund Balance
Unrestricted Net Assets$68,015,221$88,040,687▲ $20,025,466
Permanently Rstr Net Assets$0$0→ $0
Temporarily Rstr Net Assets$0$0→ $0
Total Net Assets Fund Balance$68,015,221$88,040,687▲ $20,025,466
Total Liabilities and Net Assets / Fund Balance$94,976,211$119,277,331▲ $24,301,120

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$5,464,332$2,719,198$8,183,530
Leasehold Improvements$1,345,308$935,272$2,280,580
Other Land Buildings$996,718$428,100$1,424,818
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Sally CagliotiPresidentFT$399,608$156,448$556,056
Phillip Williamson PhdVP, OperationsFT$229,761$80,911$310,672
Marc PearceVP, Business OperationsFT$212,184$80,611$292,795
Joan Dunn-williamsDirectorFT$190,774$67,231$258,005
German Leparc MdChief Medical OfficerPT$206,196$39,832$246,028
Nancy L HaubertDirectorFT$165,407$59,931$225,338
Sheryl J CyrusDirectorFT$153,940$60,751$214,691
Michael PhillipsDirectorFT$155,029$58,905$213,934
Joanne VoordeckersDirectorFT$148,963$30,521$179,484
Ron Waeckerlin MdTrustee/vice Chair--$31,955$31,955
Gary K WildeTrustee--$26,375$26,375
Kathleen S PushorTrustee--$25,587$25,587
William G GreenTrustee--$23,500$23,500

Board Members and Trustees

NameTitle
Donald D DoddridgeTrustee/chairman
Chris StilesTrustee
J Daniel ConnorTrustee
James P CovertTrustee
John WindhamTrustee
Susan BarnesTrustee/CFO
James P Aubuchon MdTrustee/secretary/treasurer
Bhavi ShahAssistant Secretary

Highest Paid Contractors

ContractorServicesLocationCompensation
Tricor America INCDelivery ServicePO BOX 8100 - SFIA, San Francisco, CA 94128$1,098,412
Mediware Information Systems INCInfo Tech Consultant11711 W 79TH STREET, Lenexa, KS 66214$966,982
FedexDelivery ServicePO BOX 94515, Palatine, IL 60094$721,993
Midnite ExpressDelivery ServiceDEPT 8255, Los Angeles, CA 90084$359,816
Southwest Airlines CargoDelivery ServicePO BOX 97390, Dallas, TX 75397$332,415
Revenue and Support

Revenue Composition

Contributions and Grants
$0
Program Service Revenue
$239,039,105
Investment Income
$1,153,535
Other Revenue
$0
Change in Net Assets
$17,680,121

Audited Revenue Reconciliation

Revenue per Audited Statements
$239,811,127
Revenue Not Reported on Financial Statements
$381,513
Revenue Not Reported on Form 990
$2,345,345
Other Revenue Adjustments
$381,513
Total Revenue per Audited Statements
$242,156,472
Total Revenue per Form 990
$240,192,640
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$186,960,465
Salaries, Compensation, and Employee Benefits$34,362,664
Grants and Similar Amounts Paid$1,189,390
Professional Fundraising Fees$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$21,320,593$3,698,697-$25,019,290
Other Expenses$2,571,119$5,917,969-$5,917,969
Other Employee Benefits$3,012,291$787,795-$3,800,086
Office Expenses$3,746,714$47,383-$3,794,097
Occupancy$3,181,272$215,266-$3,396,538
Pension Plan Contributions$2,081,111$479,832-$2,560,943
Depreciation Depletion$2,344,948$96,182-$2,441,130
Payroll Taxes$1,580,835$226,305-$1,807,140
Fees for Services Management-$1,509,319-$1,509,319
Grants to Domestic Orgs$1,189,390--$1,189,390
Information Technology$1,102,786$13,933-$1,116,719
Current Officers, Directors, Trustees, and Key Employees-$1,086,427-$1,086,427
Fees for Services Other$267,530$423,517-$691,047
Travel$102,890$378,081-$480,971
Insurance$48,125$257,067-$305,192
Advertising-$90,744-$90,744
Comp Disqual Persons$88,778--$88,778
Fees for Services Legal$78$68,374-$68,452
Fees for Service Investment Mgmnt Fees-$19,057-$19,057
Fees for Services Accounting-$14,000-$14,000
Total Functional Expenses$207,161,188$15,351,331$0$222,512,519

Audited Expense Reconciliation

Line ItemAmount
Expenses per Audited Statements$222,512,519
Total Expenses per Form 990$222,512,519
Total Expenses per Audited Statements$222,131,006
Expenses Not Reported on Form 990$-381,513
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Blood Systems IncScottsdale, AZ501(c)(3)To Bsri for Further Research$1,177,328
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Michael LeparcSon of OfficerEmployee CompensationNo$88,778

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with family members
Yes
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
Yes
CEO compensation reviewed
No
Other officer compensation reviewed
No
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
Yes
Management duties delegated
No

Governance Explanations

Form 990, Part VI, Line 6

CREATIVE TESTING SOLUTIONS HAS FOUR NONPROFIT CORPORATE MEMBERS: BLOOD SYSTEMS, INC. ("BSI"), THE INSTITUTE FOR TRANSFUSION MEDICINE ("ITxM"), BLOODWORKS NORTHWEST (FKA PUGET SOUND, "BWNW") AND ONEBLOOD, INC.

Form 990, Part VI, Line 7A

The board of directors consists of no less than 11 and no more than 17 directors appointed by the members (bsi, itxm, oneblood, inc., and bwnw). Bsi shall be entitled to designate a majority of the number of directors at all times.

Form 990, Part VI, Line 7B

CERTAIN ACTIONS AND DECISIONS OF THE CORPORATION REQUIRE PRIOR UNANIMOUS APPROVAL FROM EACH OF THE FOUR MEMBERS (BSI, ITxM, BWNW, AND ONEBLOOD, INC.) PER THE BYLAWS.

Form 990, Part VI, Line 11B

The form 990 is prepared by an outside accounting firm based on information provided by the cfo and the finance team. A copy of the draft form 990 and schedules is supplied to all board members prior to the meeting held to accept the returns. Members of management review the form 990 with the board and are available for answering questions. Any comments from the board are considered prior to filing the form 990 with the irs.

Form 990, Part VI, Line 12C

Each year, the board of directors and senior management are required to sign and return a conflict of interest form to company counsel. Any conflicts disclosed are discussed in executive session with the board and resolved. In addition, in preparation for the form 990 filing, the directors, officers and key employees identified are required to respond to a comprehensive conflict of interest and family relationship questionnaire. Any conflicts disclosed are discussed with the board and disclosed appropriately on the form 990.

Form 990, Part VI, Line 14

Blood systems, inc. ("bsi") maintains the records of creative testing solutions ("cts"). Since cts maintains no records, it has not adopted a document retention and destruction policy itself. Instead cts records are maintained under the document retention and destruction policy of bsi.

Form 990, Part VI, Line 15A and 15B

Creative testing solution relies on the methods used by bsi in establishing compensation paid to the president including: compensation committee, independent compensation consultant, compensation survey or study, and approval by the board or compensation committee of creative testing solutions.

Form 990, Part VI, Line 19

The form 990 is made available on the company's intra-net for all operating locations to access. Upon request, the form can be printed or viewed on-line. Upon written request to the chief financial officer, a copy of the form 990 will be mailed to the requestor. The governing documents and conflict of interest policy are not made available to the public. The organization's combined financial statements are made public via the annual report posted on the blood systems' website.

Filing and Contact Details

Filer

Filer Name
Creative Testing Solutions
EIN
27-1120123
In Care Of
% SUSAN BARNES
Phone
6023437016
Address
6210 EAST OAK STREET, SCOTTSDALE, AZ 85257

Signing Officer

Name
Susan L Barnes
Title
Executive VP & CFO
Phone
4806755696
Signed
2017-05-09
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Sally Caglioti
Formed
2009
Legal Domicile
Az
Voting Board Members
11
Independent Board Members
9
Employees
438
Volunteers
5

Preparer

Firm
Ernst & Young US Llp
Address
TWO NORTH CENTRAL AVENUE STE 2300, PHOENIX, AZ 85004
Preparer
Brenda Griesemer
Phone
6023223000
Supplemental Narrative

Additional Explanations

Form 990, Part III, Lines 4A and 4B

4a) donor testing blood donor testing services provided by creative testing solutions ("cts") are essential to ensuring the safety of the nation's blood supply. These testing activities are absolutely necessary and mandated by the united states food and drug administration ("fda") to provide a safe blood product for transfusion to patients. Due to the significant health risks associated with the use of human blood and blood components, it is critical for public safety purposes that blood be properly tested before being introduced into the healthcare system for use by patients. A safe blood supply is critical to the well-being of the nation's healthcare system and its patients. The significance of the testing of blood for public safety is even more pronounced in this age of threats from pandemics and terrorism. Creative testing solutions has three donor testing laboratories (dtl). Our first established laboratory is in tempe, arizona. The additional laboratories are located in bedford, texas and st. Petersburg, florida. These locations are strategically positioned near major airports in phoenix, dallas and tampa. All three dtl laboratories are food and drug administration (fda) registered facilities and hold current certifications for the clinical laboratory improvement act (clia) as well as accreditation with the american association of blood banks (aabb), the new york state department of health, california department of health services and state of florida agency for health care administration. In addition to donor specimen testing, the laboratories participate in clinical evaluation of reagents, test kits, and equipment. Cts provides the highest quality in testing and service. The laboratories maintain internal quality control programs and participate voluntarily in external quality control programs. Blood specimens are processed utilizing state of the art technology with fda licensed test kits and reagents. All laboratories are equipped with multiple and redundant instruments required for routine processing. Additionally, each facility acts as a backup laboratory to the other cts labs. Special testing our special testing laboratories in the phoenix and tampa areas perform confirmatory and supplemental testing of donor samples as well as non-donation testing such as donor re-entry, post exposure and donor follow-up. We also provide testing for eye banks, tissue banks and cord blood centers. The special testing laboratory also complies with clia, fda, ca, ny, md, and fl state regulations. Component quality control our component quality control laboratory in phoenix provides blood component quality control testing. Residual white blood cell (rwbc) counts are performed on leukoreduced products. Factor viii and fibrinogen assays are performed on cryoprecipitate and plasma products. Bacterial detection is performed on apheresis platelets. 4b) research and development the cts research program focuses on the development and/or evaluation of new blood donor screening technologies which significantly improve and promote blood safety in the areas of infectious disease, immunology, molecular diagnostics, and epidemiology. Additionally, the cts research program serves as the focus for a multi-institutional consortium which integrates data from approximately 35% of the us blood supply for the purpose of driving the evaluation of best practices in transfusion medicine, the promotion of donor health, and the improvement of transfusion recipient outcomes.

Financial Statement Notes

Schedule D, Part X, Line 2

At december 31, 2016 and 2015, the company evaluated whether it had uncertain tax positions that should be recognized or derecognized based on a 'more likely than not' threshold for tax positions taken or expected to be taken in a tax return, including those tax positions that would not be sustained upon examination in accordance with guidance related to asc 740, accounting for uncertainty in income taxes. The tax years for the company that are open to audit by the irs and state departments of revenue are the tax years ended december 31, 2013, through the current tax year. As of december 31, 2016 and 2015, the company has not identified any uncertain tax positions that would require the recording of a tax liability. The company does not anticipate a change in uncertain tax positions for the 12 months following the year ended december 31, 2016.

Schedule D, Part XI, Line 4B

Loss on disposal of assets - reclassed from expenses $ (18,487) research and development support - reclassed from expenses $ 400,000 --------- total $ 381,513 schedule d, part xii, line 2d loss on disposal of assets - reclassed to revenue $ 18,487 research and development support - reclassed to revenue $(400,000) --------- total $(381,513)

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Document Assets

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Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024Facts available. Structured filing facts are available, but richer extracted sections are limited.$239$95.4$143$495$438$57.2
2022Facts available. Structured filing facts are available, but richer extracted sections are limited.$203$87.8$115$439$397$42.1
2021XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$145$65.9$78.9$369$327$42.1
2020XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$151$79.5$71.8$406$374$31.3
2019XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$186$45.4$141$409$370$39.3
2018Facts available. Structured filing facts are available, but richer extracted sections are limited.$165$64.9$100$435$404$30.8
2016Detailed filing. Detailed filing data is available for this year.$119$31.2$88.0$240$223$17.7
2015Detailed filing. Detailed filing data is available for this year.$95.0$27.0$68.0$226$204$22.6
2014Detailed filing. Detailed filing data is available for this year.$90.8$23.9$66.9$218$203$15.2
2013Detailed filing. Detailed filing data is available for this year.$73.4$22.3$51.1$225$221$4.07
2011Facts available. Structured filing facts are available, but richer extracted sections are limited.$64.0$21.8$42.2$189
2010Facts available. Structured filing facts are available, but richer extracted sections are limited.$49.8$20.1$29.7$186
Peer Organizations

Similar nonprofits based on the same Siviq industry and scale cohort. 2016 filings • 501(c)3 • $100M-$250M nonprofits