Methodist Family Services of Philadelphia

“The executive committee is comprised of the chairperson, vice-chairperson(s), secretary, treasurer and president (without vote). The executive committee may exercise all of the powers of the board of directors when the board of directors is not in session, and shall report its actions to the board at the next meeting of the board. A quorum of the committee members must be present. Exceptions to the power and authority of the executive committee are as follows: (a) the filling of vacancies on the board (b) the adoption, amendment or repeal of the governing documents (c) the amendment or repeal of any resolution of the board (d) action on matters committed by the bylaws or by resolution of the board to another committee of the board”

“Methodist home for children (mhc), a related 501(c)(3) public charity, is considered the "sole member" for purposes of this question.”

“The board of directors are elected annually by mhc.”

“In order to amend the governing documents, written approval of the amendment must be obtained from mhc.”

“The form 990 is prepared by an independent accounting firm. All officers will receive a draft copy of the form 990 along with all comments for changes prior to filing. The final copy will be sent to the officers and board of directors through email prior to filing with the internal revenue service.”

“Officers, directors and key employees are required to disclose annually interest that could give rise to conflicts. The annual disclosures are reviewed by the board chair and the final determination as to whether a conflict exists is determined by the joint officers committee. If any director is involved individually, or as part of a business or professional firm, in the organization's business transactions or professional services they must timely disclose such a relationship and must recuse themselves when matters of such transactions are discussed and/or voted upon, and will be required to leave the meeting if such is requested by another director in attendance.”

“After input is sought from board members, the board chair responds to the annual summary of goals and objectives by conducting the annual performance evaluation with the senior vice president/executive director. Following the evaluation a review of national and state salary surveys (typically the alliance for children and families and the pennsylvania council of children, youth and family services respectively) is conducted by the chair in consultation with board leadership to set the salary and 457(b) plan contributions for the coming year. Salary adjustments following annual performance reviews of other key leadership positions (president/ceo, other vice presidents) are conducted by mhc with methodist services board member input. Salary adjustments fall into 3 categories, but are not always changed each year. 1. Cost of living adjustment (annually approved by the human resources committee), 2. Salary adjustment according to trends, and 3. Recognition for high performance in the given year. The process, deliberation and final decision are timely documented in the board minutes.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”

“At the time the return was originally filed, the organization's audit had not yet been completed. This return is being amended due to multiple year end closing adjustments. In relation to the year end closing entries, total assets on page 11, part x were increased by $7,639,626, mainly related to the gross up of the due from affiliates of $8,345,341 offset by the annual write down of the right of use (rou) asset in the amount of $628,725. Total liabilities were increased by $7,597,969, mainly related to the gross up of the due to affiliates of $8,312,239 offset by the amortization of the rou lease liability in the amount of $612,871 and a decrease in accounts payable and accrued expenses of $101,399. On page 9, part viii, line 1e, government grants/contributions were decreased by $1,917,332 and all other contributions increased by $1,996,604 primarily due to change in classification of the pass thru funders, and insurance revenue on lines 2a increased by $1,553. Client fees on line 2b decreased by $22,552. Also, in-kind contributions included on line 1f are also noted on line 1g and sch m has been completed. On page 10, part ix, line 25, overall expenses increased by $17,772 due to decreases in salaries and related accounts and management fees of approximately $131,000, offset by increases in other fee for services, occupancy and other expense, with corrections of the allocations among program, management and general and fundraising expenses, for an overall increase in revenue over expenses of $41,657. All applicable schedules were updated for these changes.”