Blood Systems Inc

“The executive committee has the powers of the board of trustees between board meetings, unless prohibited by law or the articles of incorporation. The executive committee is composed of 6 or more trustees, including the chair, vice chair, secretary-treasurer, one trustee selected by blood centers of the pacific, and two or more trustees selected by the board.”

“The form 990 is reviewed by management, including confirmation of compensation disclosures against w-2 and 1099 reporting. A copy of the draft form 990 and all schedules is supplied to all board members prior to the meeting held to accept the returns. The w-2s and 1099s are available for board review upon request. The paid preparer, ernst & young, and members of management review the form 990 with the committees and are available for answering questions. Any comments from the board are considered prior to filing with the irs.”

“Each year, the board of trustees 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 trustees, 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.”

“The board of trustees has a compensation and human resource committee whose purpose, among other things, is to hire an independent consulting firm once every 2-3 years to provide data on competitiveness of salaries and benefits for the ceo and other officers of the corporation. The members of the human resource and compensation committee of the board are all independent trustees and include no members of management. The recommendations of the committee are reviewed by the entire board prior to approval. Compensation for these individuals is set and approved by the board each year. The results of these discussions, reviews and approvals are documented in the executive minutes of the board meetings. This process was last completed in 2015.”

“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 form 990 for current and past years is also posted on guidestar for organizations to access. 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 organization's website.”

“In 2012, sally caglioti and eugene robertson were reported as an officer and key employee, respectively, of blood systems, inc. ("bsi"). Creative testing solutions ("cts"), a related 501(c)(3) organization, leased their employees from bsi in 2012, including sally caglioti and eugene robertson. In 2013 cts hired their own employees, including sally caglioti and eugene robertson. Thus, they are no longer considered an officer or key employee of bsi. For this reason, they are being reported as former.”

“As described in the narrative for part iii, line 4b, biocare is a division of blood systems inc. The biocare division was conceived to provide blood bank reagents and transfusion medicine-related, plasma-derived pharmaceutical derivatives to existing hospital customers as a convenient, value-added service. Currently, biocare functions as a specialty distributor of therapeutic plasma-derivative products and, increasingly, recombinant-based products to blood systems traditional customer base of hospitals, as well as out-patient surgery centers, specialty pharmacies and physician practices. The majority of products sold are used to treat diseases and medical conditions that are connected with or related to blood or blood-borne medical conditions. All of the products sold by biocare are manufactured by commercial bio-pharmaceutical companies. The significant difference between biocare and its for-profit competitors in terms of pricing is that in the event there is a shortage of certain product, the for-profit competitors may raise their pricing up to two or three times normal pricing, while biocare maintains its pricing very close to original levels, only increasing pricing to offset increased acquisition costs. The reason biocare has taken this approach is due to bsis exempt purpose to deliver products for transfusion and treatment purposes. Biocare also differs from its for-profit competitors in that biocares distribution services offer same-day and stat delivery options over the weekend or after hours for a much lower cost than its for-profit competitors. Biocare represents the fastest possible option of getting life-saving plasma-derived and recombinant-based products to its traditional customer base over the weekend (friday, saturday and sunday). Most for-profit competitors do provide 24 hour ordering services; however, unless an order is received prior to the close of business on thursday, the product will not be delivered until the following week. Biocare also uses approximately 20 ordering locations (facilities) nationwide that are capable of storing and distributing product, while most competitors only have a few. It should be noted that the activities undertaken by blood systems related to its exempt purposes as a whole are substantial as compared to the activities of the biocare division. While biocare comprises a significant portion of bsis overall revenue, the number of employees (approximately 43) and hours producing this revenue is very small, as compared to the total number of bsi employees (approxmately 2,800) and hours producing the related exempt purpose revenue. Plasma-derivative products treated as related (col b) - plasma-derivative products are products that are manufactured from proteins found in human plasma and are used to treat diseases and medical conditions that are connected with or related to blood or blood borne medical conditions. It is blood systems position that providing blood-derived products, which are manufactured by bio-pharmaceutical companies using human blood/plasma, to hospitals and other healthcare providers for use in treating medical conditions of patients is directly related to blood systems exempt purposes. As the products sold are made from and contain human blood/plasma and protein, there is a substantial nexus between the sale of these products and blood systems exempt purposes. It should be noted that other non-profit competitors also treat similar revenue as related, thus making it an industry standard. Accordingly, the sale of plasma-derivative products is being treated as related revenue (see part viii, line 2a, column (b)). Recombinant-based products treated as unrelated (col c) - recombinant-based products are products that are not made from fractionated human plasma. Instead, these products are genetically engineered. The resulting product has the structural and functional characteristics similar to the component found in human plasma (or based on a protein in human plasma”

“THE MISSION OF BLOOD SYSTEMS, INC. ("BSI") IS TO MAKE A DIFFERENCE IN PEOPLE'S LIVES BY BRINGING TOGETHER THE BEST PEOPLE, INSPIRING INDIVIDUALS TO DONATE BLOOD, PRODUCING A SAFE AND AMPLE BLOOD SUPPLY, ADVANCING CUTTING-EDGE RESEARCH AND EMBRACING CONTINUOUS QUALITY IMPROVEMENT. TO FURTHER ITS MISSION, BSI OPERATES 17 COMMUNITY BLOOD CENTERS. THESE CENTERS RECRUIT BLOOD DONORS AND COLLECT, PROCESS AND DISTRIBUTE APPROXIMATELY 860,000 BLOOD DONATIONS TO MEET THE BLOOD NEEDS OF PATIENTS IN MORE THAN 500 HOSPITALS THROUGHOUT THE COUNTRY. THE STAFF OF NEARLY 2,300 SERVES A GEOGRAPHIC AREA COVERING THE UNITED STATES, FROM THE EAST COAST TO CALIFORNIA AND FROM THE CANADIAN BORDER TO MEXICO. BSI IS KNOWN MORE COMMONLY THROUGHOUT THE UNITED STATES BY THE NAME OF ITS BLOOD BANKING DIVISION, UNITED BLOOD SERVICES. BSI IS LICENSED BY THE U.S. FOOD AND DRUG ADMINISTRATION ("FDA") AS A PROVIDER OF BLOOD AND BLOOD SERVICES. THE COMPANY'S THREE OPERATING DIVISIONS ARE: (1) THE BLOOD BANKING DIVISION, WHICH INCLUDES UNITED BLOOD SERVICES; (2) THE BIOCARE DIVISION; AND (3) THE BLOOD SYSTEMS RESEARCH INSTITUTE. THESE OPERATING DIVISIONS ARE UNINCORPORATED DIVISIONS DOING BUSINESS UNDER REGISTERED TRADENAMES AND SERVICE MARKS. BSI CONDUCTS ITS BLOOD BANKING ACTIVITIES THROUGH ITS REGIONAL BLOOD CENTERS LOCATED IN THE FOLLOWING STATES: ARIZONA, CALIFORNIA, COLORADO, LOUISIANA, MISSISSIPPI, MONTANA, NEVADA, NEW MEXICO, NORTH DAKOTA, SOUTH DAKOTA, TEXAS, OHIO, NEW JERSEY, AND WYOMING. THE BIOCARE DIVISION DISTRIBUTES PLASMA-DERIVED PRODUCTS THROUGH HOSPITALS, COMMUNITY BLOOD CENTER LOCATIONS AND ALSO DIRECTLY FROM ITS HEADQUARTERS IN TEMPE, ARIZONA. BLOOD-RELATED RESEARCH IS CONDUCTED AT THE BLOOD SYSTEMS RESEARCH INSTITUTE LOCATED IN SAN FRANCISCO, CALIFORNIA. FORM 990, PART III, LINE 2 ON JANUARY 1, 2015 BSI EFFECTED A MEMBER SUBSTITUTION (ACQUIRED) WITH LIFESHARE COMMUNITY BLOOD SERVICES, INC ("lIFESHARE"). LIFESHARE IS A COMMUNITY-FOCUSED NONPROFIT ORGANIZATION COMMITTED TO PROVIDING A SAFE AND ADEQUATE BLOOD SUPPLY AND COMPONENT SUPPLY FOR PATIENT HEALTHCARE IN NORTHEAST OHIO. ON FEBRUARY 1, 2015 BSI EFFECTED A MEMBER SUBSTITUTION (ACQUIRED) WITH BERGEN COMMUNITY REGIONAL BLOOD CENTER, INC ("cOMMUNITY BLOOD SERVICES"). COMMUNITY BLOOD SERVICES PROMOTeS THE HEALTH OF THE COMMUNITY BY PROVIDING HIGH-QUALITY BLOOD AND TISSUE SERVICES. ON NOVEMBER 1, 2015 BSI EFFECTED A MEMBER SUBSTITUTION (ACQUIRED) WITH MID-SOUTH REGIONAL BLOOD CENTER, INC ("MID-SOUTH"). MID-SOUTH IS A COMMUNITY-FOCUSED NONPROFIT ORGANIZATION COMMITTED TO PROVIDING A SAFE AND ADEQUATE BLOOD SUPPLY FOR PATIENT HEALTHCARE IN THE MID-SOUTH REGION.”

“4a) united blood services - blood banking the blood banking division operates under the name united blood services ("ubs"). The primary purpose of ubs is to provide a safe and stable supply of blood and blood components to hospitals and medical facilities. The strength of ubs is that it operates as local blood centers that are part of the community and yet has access to a large networked organization with all the advantages and efficiencies that are realized through standardization and economies of scale. Ubs collects blood from volunteer donors, performs screening and testing on the donated blood, and processes the whole blood into blood components such as red cells, platelets and plasma. Blood and blood components are then stored and distributed to hospitals and other health care providers. 4b) biocare - biologicals the biocare division provides biological products, both human-plasma derived and recombinant products, that serve as adjunct therapies in transfusion medicine and healthcare. Plasma derivatives are basically protein therapies provided from plasma left over from whole blood donations. Examples of such plasma derivatives include: intravenous immune globulins, coagulation factors, albumin and fibrin sealants. These products are used as therapies for immune system disorders, bleeding disorders and wound management. Recombinant-based products are products that are not made from fractionated human plasma. Instead, these products are genetically engineered. The resulting product has the structural and functional characteristics similar to the component found in human plasma (or based on a protein in human plasma) that the drug was synthesized to imitate. Recombinant-based products are often stabilized with albumin (concentrate of plasma proteins from human plasma), but these products are not manufactured from human plasma. These recombinant products, similar to the plasma-derivative products, are used to treat diseases and medical conditions that are connected with or related to blood or blood-borne medical conditions. 4c) blood systems research institute blood systems research institute ("bsri") facilitates research primarily funded by extramural grants (nih and others). The research is in transfusion medicine epidemiology, health policy, virology, viral discovery, the immune reaction to transfusion and to transfusion-transmitted infectious agents, cell therapy and genetic epidemiology. Areas studied include implications of receiving components at different storage ages; mechanism of virus entry into cells; how transfusion transmitted viruses cause symptoms; the use of commercially available or locally-developed donor tests; the factors leading to chimerism, etc. Bsri supports training programs for specialists in transfusion medicine and the development of epidemiology research scientists. Bsri investigators publish more than 45 papers each year in the peer-reviewed scientific literature. The research facility is staffed with 12 investigators, 24 research associates, 16 staff scientists and various other positions as well as administrative support. 4d) other program services consist of laboratory services and other program activities.”

“Cts distribution of earnings $ 6,500,000 csic distribution of earnings $ 5,000,000 pension recapture exp other than net periodic cost $(3,294,514) ----------- total $ 8,205,486”