Iron Range School

“The Board of Directors elected to delegate the review of the Form 990 to the Audit Committee, which contains members of the Board of Directors. Copies of the Form 990 along with all of the schedules are sent to the audit committee staff prior to filing.”

“Members of the Board of Directors are required to sign an annual conflict of interest statement. If, after completion by the member, and if a potential conflict were to exist it would be sent to the Vice President of Compliance for review. Depending on the findings of the Vice President, the potential conflict may be taken to the Compliance Committee for review and final decision.--”

“The Management Development and Compensation Committee of the Board of Directors (MDCC) consists of independent Directors, and has responsibility to review and give approval of the compensation for the CEO and other top management positions. Periodically the MDCC engages an outside Compensation Consultant to conduct an independent analysis of base compensation and total cash compensation for the key management positions. This analysis may include a competitive market assessment for each position compared to organizations of similar size in healthcare and other not-for-profit sectors. Nationally published surveys and Form 990's from other not-for-profits organizations may be included in the study.--”

“The Form 990 is available to the public upon request. Other organizational documents are available to the public upon written request demonstrating a sufficient business purpose.--FORM 990, PART VII, SECTION A, COLUMNS (B), (E), & (F)Officers and employees are paid through KidsPeace Corporation, which is the parent company. Compensation is charged to KidsPeace Corporation and then allocated to related organizations through a management fee. General and administrative costs of the parent company that benefit the subsidiary companies are allocated to those companies in a method that utilizes a beneficial or causal relationship and results in the most equitable distribution based upon the nature of the cost being allocated.”

“Client Note 1 - OVERVIEW: KidsPeace is a 133-year-old healthcare nonprofit that is dedicated to providing hope, help, and healing to children, families and communities. With 38 centers across the country, this national organization helps thousands of children each day through life-saving treatment, and reaches millions more kids and families each year with prevention and public education campaigns designed to help kids avoid and overcome the kinds of crises that can strike any child. Founded in Bethlehem, PA, KidsPeace has more than a century of experience in healing and guiding children through disasters, personal traumas, family problems, abuse, neglect, depression, and, today, the many stresses of modern life. KidsPeace exists to give kids peace.PROGRAM SERVICES & ACCOMPLISHMENTS:KidsPeace Residential Programs: In 2014, some 11,183 children suffering from abuse, neglect and emotional trauma found comfort and healing through a network of KidsPeace programs and services. Accredited by the Joint Commission on Accreditation of Healthcare Organizations, the top accrediting body in America, the campuses provide a warm and comfortable home away from home, food, clothes, therapy, life skills, therapeutic recreation, and education to restore childhood to children. Staffed by doctors, nurses, social workers, psychologists, nutritionists, therapists, and caring counselors, the programs help children heal while building confidence and competence to make healthy choices for brighter futures. These campuses, some as large as 200 acres, strive to give the best to kids who have been through the worst, with world-class facilities including homes, athletic fields, swimming pools, and state-of-the-art learning facilities. The KidsPeace residential programs help kids from across the country (and even from across the globe), and in 2014 were located in four states: Pennsylvania, Maine, Minnesota, and Georgia.Quality Outcomes: KidsPeace programs and services are research-based and annual outcomes studies are conducted to ensure our programs are of the highest caliber. In 2014, KidsPeace kids were asked to rate how well KidsPeace embodies the principles of our Model of Care. Children responded positively about their:Sense of dignity: 91%Feeling of safety: 84%Sense of belonging: 79%Feelings of empowerment: 88%Development of character: 91%Transformation and growth: 96%KidsPeace Psychiatric Hospital: This national resource, located in Pennsylvania, minutes by air from New York, Washington, D.C. and Philadelphia, helped 2,077 kids in 2014. The hospital is a private, not-for-profit facility caring for children in serious emotional distress. It specializes in caring for children, pre adolescents, adolescents and young adults through custom-designed programs to meet each patients specific needs, from severe trauma and depression to emotional challenges prompted by autism or lower intellectual functioning. Patients in the Hospital benefit from an on-site school system, which ensures children's academic progress while they work to overcome crises.KidsPeace Foster Care & Adoption Programs: More than 879 children found help in 2014 through KidsPeaces 26 foster care and adoption centers. Our foster-care program is specifically designed for children who have endured or face crises in their birth homes. Unlike traditional foster care, our programs recruit, intensively train and support foster families to respond to the special needs of our children. Foster families receive 24-hour, seven-day-a-week assistance from on-call professionals and KidsPeace foster families usually care for no more than two children in a home - fewer than is common in most foster homes - to better focus on the individual needs of each child.KidsPeace Foster Care and Family Services sites provided adoption services to many children in 2014, helping find permanent homes for many wonderful children who were labeled "unadoptable" by other providers. We owe our success to the unique compone”

“Adjust Net Assets on bankruptcy emergence = -$1980934”

“Upon the exit from Chapter 11, KidsPeaces debt obligations were substantially reduced due to the agreement onlower Bondholder Debt; a substantial reduction in Defined Pension Plan liabilities; a reduction in trade vendorbalances; the rescheduling of mortgage obligations; and with KidsPeaces access to significant post Chapter 11financing through a revolving line of credit to supplement internally generated working capital. The purpose of theentry into and the successful exit from Chapter 11 was to substantially increase the probability of KidsPeace beingFor Iron Range School, the result was an increase in net assets of $1,980,934able to continue its purpose and is dependent upon future business performance and compliance with agreed-uponcovenants between KidsPeace, the Bondholders and funding sourcesThe following table provides a summary of the financial impact of the Chapter 11 exit:Net gain on extinguishment of liabilities: ($95,775,279)1998 and 1999 Pennsylvania Bonds principal - gain($21,064,242)1998 and 1999 Pennsylvania Bonds interest - gain($4,612,948)Defined Benefit Plan obligation assumed by the PBGC - gain($68,751,252)Excess Benefit Pension Plan termination - gain($723,566)Reduction in liabilities related to Unsecured Creditors and other pre-bankruptcy balances - net gain ($623,241)”