Children'S Hospital Los Angeles

“The form 990 is prepared by deloitte tax llp, working in conjunction with chla's finance department. Chla's director of finance and controller has direct responsibility for this effort, subject to supervision by the chief financial officer. After an initial draft of the form 990 is prepared, it is circulated for review and comment by relevant members of the executive team who have responsibility and/or knowledge about the various matters disclosed and/or described in the form. The chief financial officer and general counsel, in particular, review the form 990 and ensure accuracy of descriptions and that disclosure is complete. The draft form 990 is reviewed by the audit committee of chla, acting on behalf of the board of directors of chla. Once the draft form 990 has been reviewed and discussed by the audit committee, any changes resulting from their review is incorporated into the final draft of the form 990. The final draft of the form 990 is then distributed to the board of directors via a secure web site for their review and comments prior to the filing of the form 990.”

“Chla monitors and enforces compliance with its conflict of interest policy through annual circulation of a conflict of interest questionnaire which is to be answered by members of its board of directors, officers, medical staff members, and certain key employees. Furthermore, individuals covered by the policy are required to disclose any personal interests that could create a conflict of interest on a continuous basis throughout the year. Any disclosures presenting a conflict of interest are evaluated by a combination of chla's conflict of interest committee, general counsel, chief compliance officer, chief executive officer, chief medical officer, research compliance and integrity officer, and board of directors and its audit committee, depending on the individual making the disclosure. Disclosures will be initially assessed by chla's office of compliance and privacy and, if a conflict exists, it will be referred to chla's conflict of interest committee for further evaluation. If a conflict exists involving a chla board member, the board of directors is responsible for reviewing the conflict and determining the conflict resolution, which may include, but is not limited to, a conflict management stipulation requiring the board member's recusal from certain chla matters.”

“The process for determining the compensation of the chief executive officer of chla is conducted by the board of directors of chla. In determining the chief executive officer's compensation during the tax period of this information return the board worked with and relied upon the counsel and expertise of sullivancotter and associates, inc., a firm with experience and expertise in the area of non-profit organization executive compensation. Sullivancotter provided benchmarked reports to the board, which furnished the basis for the establishment of the chief executive officer's compensation package. Their reports were based on a review of the executive compensation practices of a variety of hospitals and healthcare systems that are considered comparable to chla based on various metrics such as hospital type and revenue. The board deliberated on the issue of the chief executive officer's compensation package in light of these reports and sullivancotter were available to answer any questions regarding such reports and other relevant matters. Based on such deliberations, board negotiated a written contract with the chief executive officer. The process for determining the compensation of officers and other key employees of chla is conducted by the board of directors of chla, with support and guidance from the chief executive officer and human resources department. In determining such employee's compensation, during the compensation season the human resources department and the board worked with and relied upon the counsel and expertise of sullivancotter, a firm with experience and expertise in the area of non-profit organization executive compensation, including pediatric systems. Sullivancotter provided an executive compensation report to the human resources department and the board which furnished the basis for the establishment of such employee's compensation package during the following year. Sullivancotter's report was based on a review of executive compensation practices of a variety of hospitals and healthcare systems that are considered comparable to chla based on various metrics such as hospital type and revenue. In addition, the chief executive officer made a recommendation to the board with respect to each of such employee's compensation package in light of the sullivancotter report and in light of the executive's performance. At the board meeting addressing such matters, sullivancotter were available to answer any questions regarding such report and other relevant matters, and recommendations from the chief executive officer were requested by and provided to the board. Based on such deliberations, the board made a decision regarding the compensation package for such employees for the following year. Based on the approved compensation, sullivancotter opined that chla's chief executive's total compensation is reasonable and defensible from a regulatory perspective under all scenarios. This opinion of reasonableness also applies with respect to the california nonprofit integrity act of 2004. Based on the approved compensation, sullivancotter opined that chla's officer and key executive total compensation is reasonable and defensible from a regulatory perspective under all scenarios. This opinion of reasonableness also applies with respect to the california nonprofit integrity act of 2004.”

“Chla does not make its governing documents and conflict of interest policy available to the public. Chla's financial statements are contained in its form 990, which is available for public inspection during business hours.”

“We create hope and build healthier futures. As a leading academic children's hospital, we fulfill our mission by: caring for children, adolescents, young adults, families and each other; advancing knowledge; preparing future generations; building our financial strength.”

“Professional medical fees: program service expenses 139,510,157. Management and general expenses 23,954,695. Fundraising expenses 470,188. Total expenses 163,935,040. Medical-related services: program service expenses 13,285,477. Management and general expenses 661,859. Fundraising expenses 0. Total expenses 13,947,336. Other purchased services: program service expenses 30,630,049. Management and general expenses 54,120,628. Fundraising expenses 3,867,442. Total expenses 88,618,119.”

“Change in value of split interest agreements -164,717. Transfers and others 9,701,698. Change in swap mark to market 1,122,311.”