lefile GRAPHIC print - DO NOT PROCESS I As Filed Data - I DLN: 934932720061651
Form990 Return of Organization Exempt From Income Tax
Under section 501 (c), 527, or 4947( a)(1) of the Internal Revenue Code (except privatefoundations)
Department of the Treasury Do not enter social security numbers on this form as it may be made public
Internal Revenue Service 1-Information about Form 990 and its instructions is at www.IRS.gov/form990
For the 2014 calendar year, or tax year beginning 01-01-2014 , and ending 12-31-2014
OMB No 1545-0047
201 4
B Check if applicableC Name of organization D Employer identification number
Winifred Masterson Burke Medical Res Ins IncF Address change 13-3434924
F Name change Doing business as
1 Initial returnE Telephone number
Final Number and street (or P 0 box if mail is not delivered to street address) Room/suite
fl return/terminated 785 Mamaroneck Avenue(914) 597-2240
1 Amended return City or town, state or province, country, and ZIP or foreign postal codeWhite Plains, N
(- Application pendingY 10605 G Gross receipts $ 13,744,363
F Name and address of principal officer H(a) Is this a group return forRajiv Ratan MDPhD subordinates? fl Yes F No785 Mamaroneck AveWhite Plains, NY 10605 H(b) Are all subordinates 1 Yes (- No
included?
I Tax-exempt status F 501(c)(3) 1 501(c) ( ) I (insert no ) (- 4947(a)(1) or F_ 527 If "No," attach a list (see instructions)
J Website : - www burke org H(c) Group exemption number 0-
K Form of organization F Corporation 1 Trust F_ Association (- Other 0- L Year of formation 1988 M State of legal domicile NY
Summary
1 Briefly describe the organization's mission or most significant activitiesTHE BURKE MEDICAL RESEARCH INSTITUTE WORKS IN CONJUNCTION WITH THE BURKE REHAB HOSPITAL AND WEILLCORNELL MC TO DEVELOP NEW
w
2 Check this box if the organization discontinued its operations or disposed of more than 25% of its net assets
3 Number of voting members of the governing body (Part VI, line la) . . . . . . . 3 24of:2 4 N umber of independent voting members of the governing body (Part VI, line 1 b) . . . . 4 21
5 Total number of individuals employed in calendar year 2014 (Part V, line 2a) . 5 100
6 Total number of volunteers (estimate if necessary) 6 20
7a Total unrelated business revenue from Part VIII, column (C), line 12 . 7a 0
b Net unrelated business taxable income from Form 990-T, line 34 . . . . . . . 7b
Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) . 12,775,478 13,643,645
9 Program service revenue (Part VIII, line 2g) 0
N 10 Investment income (Part VIII, column (A), lines 3, 4, and 7d . 0
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 115,135 100,718
12 Total revenue-add lines 8 through 11 (must equal Part VIII, column (A), line12) . . . . . . . . . . . . . . . . . . . 12,890,613 13,744,363
13 Grants and similar amounts paid (Part IX, column (A), lines 1-3) . 0
14 Benefits paid to or for members (Part IX, column (A), line 4) . 0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines6,802,870 7,607,005
5-10)
16a Professional fundraising fees (Part IX, column (A), line 11e) 0
LLJb Total fundraising expenses (Part IX, column (D), line 25) 0-0
17 Other expenses (Part IX, column (A), lines h1a-11d, 11f-24e) . . . . 7,476,550 7,553,525
18 Total expenses Add lines 13-17 (must equal Part IX, column (A), line 25) 14,279,420 15,160,530
19 Revenue less expenses Subtract line 18 from line 12 -1,388,807 -1,416,167
Beginning of CurrentEnd of Year
Year
M20 Total assets (Part X, line 16) 13,830,620 13,571,621
%TS 21 Total liabilities (Part X, line 26) . . . . . . . . . . . . 9,281,510 9,509,075
ZLL 22 Net assets or fund balances Subtract line 21 from line 20 4 549 110 4 062 546
lijaW Signature Block
Under penalties of perjury, I declare that I have examined this return, includinmy knowledge and belief, it is true, correct, and complete Declaration of prepspreparer has any knowledge
SignSignature of officer
Here Rajiv Ratan MD Vice President
Type or print name and title
Print/Type preparer's name Preparers signatureSCOTT EDELMAN SCOTT EDELMAN
PaidFirm's name 1- WINIFRED MASTERSON BURKE FOUNDATION
Pre pare rUse Only Firm's address 0-785 MAMARONECK AVE
WHITE PLAINS, NY 10605
May the IRS discuss this return with the preparer shown above? (see instructs
For Paperwork Reduction Act Notice, see the separate instructions.
Form 990 ( 2014) Page 2
Statement of Program Service AccomplishmentsCheck if Schedule 0 contains a response or note to any line in this Part III .(-
1 Briefly describe the organization 's mission
STROKE, SPINAL CORD INJURY, TRAUMATIC BRAIN INJURY AND ALZHEIMERS DISEASE ARE LEADING CAUSES OF DISABILITY INTHE U S THE BURKE MEDICAL RESEARCH INSTITUTE WORKS IN CONJUNCTION WITH THE BURKE REHABILITATION HOSPITALAND WEILL CORNELL MEDICAL COLLEGE TO DEVELOP NEWTHERAPEUTIC APPROACHES TO THESE IMPAIRMENTS
2 Did the organization undertake any significant program services during the year which were not listed onthe prior Form 990 or 990-EZ7 . . . . . . . . . . . . . . . . . . . . . . fl Yes F No
If "Yes," describe these new services on Schedule 0
3 Did the organization cease conducting , or make significant changes in how it conducts, any programservices? . . . . . . . . . . . . . . . . . . . . . . . . . . . . F Yes F7 No
If "Yes," describe these changes on Schedule 0
4 Describe the organization 's program service accomplishments for each of its three largest program services, as measured byexpenses Section 501(c)(3) and 501( c)(4) organizations are required to report the amount of grants and allocations to others,the total expenses , and revenue , if any, for each program service reported
4a (Code ) ( Expenses $ 8,732,845 including grants of $ ) ( Revenue $
MEDICAL RESEARCH INVOLVING NEUROLOGICAL RELATED DISEASES, SUCH AS DEMENTIA, ALZHEIMERS PARKINSONS THE BURKE MEDICAL RESEARCH INSTITUTESEEKS TO HARNESS THE BEST IN CONTEMPORARY NEUROSCIENCE TO ADVANCE INTERVENTIONS TO IMPROVE BRAIN REPAIR AND RECOVERY OF FUNCTION FROMALL NEUROLOGICAL DISEASES THIS ENDEAVOR IS ACTIVELY ADVANCED BY FREQUENT LIVELY INTERCHANGE BETWEEN SCIENTISTS WORKING ON NOVELPHARMACOLOGICAL, BIOLOGICAL AND ROBOTIC APPROACHES TO REPAIR THE DAMAGED BRAIN THE BURKE MEDICAL RESEARCH INSTITUTE AND THE BURKEREHABILITATION HOSPITAL ARE EXPERTS IN THE REHABILITATION OF NEUROLOGICAL DISEASES, WHO ARE COMMITTED TO HELP TRANSLATE THESE APPROACHESTO THE BEDSIDE HOWEVER, WE ARE FAR FROM REACHING OUR CLINICAL GOALS AND POTENTIAL, THE LACK OF BRAIN REPAIR AND CONSEQUENT DISABILITYREMAINS A LARGE AND ALMOST SILENT EPIDEMIC
4b (Code ) ( Expenses $ including grants of $ ) (Revenue $
4c (Code ) ( Expenses $ including grants of $ ) (Revenue $
4d Other program services ( Describe in Schedule 0
(Expenses $ including grants of $ ) (Revenue $
4e Total program service expenses 0- 8,732,845
Form 990 (2014)
Form 990 (2014) Page 3
Checklist of Required Schedules
Yes No
1 Is the organization described in section 501(c)(3) or4947(a)(1) (other than a private foundation)? If "Yes," Yes
complete Schedule As . . . . . . . . . . . . . . . . . . . . . . . 1
2 Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? 2 Yes
3 Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to Nocandidates for public office? If "Yes,"complete Schedule C, Part I . . . . . . . . . . 3
4 Section 501 ( c)(3) organizations . Did the organization engage in lobbying activities, or have a section 501(h) Noelection in effect during the tax year? If "Yes,"complete Schedule C, Part II . . . . . . . 4
5 Is the organization a section 501 (c)(4), 501 (c)(5), or 501(c)(6) organization that receives membership dues,assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes," complete Schedule C,Part III . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 N o
6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have theright to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes,"completeSchedule D, Part I . . . . . . . . . . . . . . . . . . . . . . . 6 N o
7 Did the organization receive or hold a conservation easement, including easements to preserve open space,the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part II . . 7 No
8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes,"complete Schedule D, Part III . . . . . . . . . . . . . . . . . . . 8 N o
9 Did the organization report an amount in Part X, line 21 for escrow or custodial account liability, serve as acustodian for amounts not listed in Part X, or provide credit counseling, debt management, credit repair, or debtnegotiation services? If "Yes," complete Schedule D, Part IV . . . . . . . . . . . . . . 9 No
10 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, 10 Nopermanent endowments, or quasi-endowments? If "Yes,"complete Schedule D, Part V . . . . . .
11 If the organization's answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII,VIII, IX, or X as applicable
a Did the organization report an amount for land, buildings, and equipment in Part X, line 10?
If "Yes," complete Schedule D, Part VI. . . . . . . . . . . . . . . . . . . . lla Yes
b Did the organization report an amount for investments-other securities in Part X, line 12 that is 5% or more ofits total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VII . . . . . . lib No
c Did the organization report an amount for investments-program related in Part X, line 13 that is 5% or more ofits total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIII . . . . . . llc No
d Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assetsreported in Part X, line 16? If "Yes," complete Schedule D, Part IX . . . . . . . . . . . lid No
e Did the organization report an amount for other liabilities in Part X, line 25? If "Yes," complete Schedule D, Part,lie Yes
f Did the organization's separate or consolidated financial statements for the tax year include a footnote thatllf No
addresses the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes,"completeSchedule D, Part X . . . . . . . . . . . . . . . . . . . . . . . . .
12a Did the organization obtain separate, independent audited financial statements for the tax year?If "Yes," complete Schedule D, Parts XI and XII . . . . . . . . . . . . . . . . 12a N o
b Was the organization included in consolidated, independent audited financial statements for the tax year? If12b Yes
"Yes," and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional S
13 Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes," completeScheduleE13 No
14a Did the organization maintain an office, employees, or agents outside of the United States? . 14a No
b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising,business, investment, and program service activities outside the United States, or aggregate foreign investmentsvalued at $100,000 or more? If "Yes," complete Schedule F, Parts I and IV . . . . . . . . 14b No
15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to orfor any foreign organization? If "Yes," complete Schedule F, Parts II and IV 15 No
16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or otherassistance to or for foreign individuals? If "Yes," complete Schedule F, Parts III and IV . . 16 No
17 Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part 17 NoIX, column (A), lines 6 and 11e? If "Yes," complete Schedule G, PartI (see instructions) . . . .
18 Did the organization report more than $15,000 total of fundraising event gross income and contributions on PartVIII, lines 1c and 8a? If "Yes," complete Schedule G, Part II . . . . . . . . . . . 18 No
19 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If 19 No"Yes," complete Schedule G, Part III . . . . . . . . . . . . . . . . . . .
20a Did the organization operate one or more hospital facilities? If "Yes,"completeScheduleH . . 20a No
b If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return?20b
Form 990 (2014)
Form 990 (2014) Page 4
Checklist of Required Schedules (continued)
21 Did the organization report more than $5,000 of grants or other assistance to any domestic organization or 21 Nodomestic government on Part IX, column (A), line 1? If "Yes," complete Schedule I, Parts I and II . .
22 Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on Part 22IX, column (A), line 2? If "Yes," complete Schedule I, Parts I and III .
No
23 Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organization'scurrent and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," 23 Yes
complete Schedule J . . . . . . . . . . . . . . . . . . . . . .
24a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000as of the last day of the year, that was issued after December 31, 2002? If"Yes," answer lines 24b through 24dand complete Schedule K. If "No,"go to line 25a . . . . . . . . . . . . . . . 24a N o
b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?24b
c Did the organization maintain an escrow account other than a refunding escrow at any time during the yearto defease any tax-exempt bonds? . 24c
d Did the organization act as an on behalf of issuer for bonds outstanding at any time during the year? . 24d
25a Section 501(c)( 3), 501 ( c)(4), and 501 ( c)(29) organizations . Did the organization engage in an excess benefittransaction with a disqualified person during the year? If "Yes," complete Schedule L, PartI . . . . 25a No
b Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prioryear, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ? If 25b No
"Yes," complete Schedule L, Part I . . . . . . . . . . . . . . . . . . .
26 Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any currentor former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? 26 NoIf "Yes," complete Schedule L, Part II . . . . . . . . . . . . . . . .
27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantialcontributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family 27 No
member of any of these persons? If "Yes," complete Schedule L, Part III . . . . . . . . .
28 Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IVinstructions for applicable filing thresholds, conditions, and exceptions)
a A current or former officer, director, trustee, or key employee? If "Yes,"complete Schedule L, PartIV . . . . . . . . . . . . . . . . . . . . . . . . .
28a No
b A family member of a current or former officer, director, trustee, or key employee? If "Yes,"complete Schedule L, Part IV . . . . . . . . . . . . . . . . . . . . . 28b N o
c A n entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) wasan officer, director, trustee, or direct or indirect owner? If "Yes,"complete Schedule L, Part IV . . 28c No
29 Did the organization receive more than $25,000 in non-cash contributions? If "Yes,"completeScheduleM 29 No
30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualifiedconservation contributions? If "Yes," complete Schedule M . . . . . . . . . . . . 30 No
31 Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N,Part I . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 N o
32 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes, " completeSchedule N, Part II . . . . . . . . . . . . . . . . . . . . . 32 N o
33 Did the organization own 100% of an entity disregarded as separate from the organization under Regulationssections 301 7701-2 and 301 7701-3? If "Yes," complete Schedule R, PartI . . . . . . . 33 No
34 Was the organization related to any tax-exempt or taxable entity? If "Yes,"complete Schedule R, Part II, III, orIV,
and Part V, line 1 . . . . . . . . . . . . . . . . . . . . . . . 34 Yes
35a Did the organization have a controlled entity within the meaning of section 512(b)(13)?35a N o
b If'Yes'to line 35a, did the organization receive any payment from or engage in any transaction with a controlledentity within the meaning of section 512 (b)(13 )? If "Yes,"complete Schedule R, Part V, line 2 . . . 35b
36 Section 501(c)( 3) organizations . Did the organization make any transfers to an exempt non-charitable relatedorganization? If "Yes,"complete Schedule R, Part V, line 2 . . . . . . . . . . . . . 36 No
37 Did the organization conduct more than 5% of its activities through an entity that is not a related organizationand that is treated as a partnership for federal income tax purposes? If "Yes," complete Schedule R, Part VI 37 No
38 Did the organization complete Schedule 0 and provide explanations in Schedule 0 for Part VI, lines 1 lb and 19?Note . All Form 990 filers are required to complete Schedule 0 . . . . . . . . . . . 38 Yes
Form 990 (2014)
Form 990 (2014) Page 5
MEW-Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule 0 contains a response or note to any line in this Part V (-
Yes No
la Enter the number reported in Box 3 of Form 1096 Enter -0- if not applicable . la 27
b Enter the number of Forms W-2G included in line la Enter-0- if not applicable lb 0
c Did the organization comply with backup withholding rules for reportable payments to vendors and reportablegaming (gambling) winnings to prize winners? . . . . . . . . . . . . . . . . . 1c Yes
2a Enter the number of employees reported on Form W-3, Transmittal of Wage andTax Statements, filed for the calendar year ending with or within the year coveredby this return . . . . . . . . . . . . . . . . . 2a 100
b If at least one is reported on line 2a, did the organization file all required federal employment tax returns?Note . If the sum of lines la and 2a is greater than 250 you may be required to e-file (see instructions)
2b Yes,
3a Did the organization have unrelated business gross income of $1,000 or more during the year? . . 3a No
b If "Yes," has it filed a Form 990-T for this year? If 'No" to line 3b, provide an explanation in Schedule O . . 3b
4a At any time during the calendar year, did the organization have an interest in, or a signature or other authorityover, a financial account in a foreign country (such as a bank account, securities account, or other financialaccount)? . . . . . . . . . . . . . . . . . . . . . . . . . . No
b If "Yes," enter the name of the foreign country 0-See instructions for filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts(FBA R)
5a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? . 5a No
b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? 5b No
c If "Yes," to line 5a or 5b, did the organization file Form 8886-T?5c
6a Does the organization have annual gross receipts that are normally greater than $100,000, and did the 6a Noorganization solicit any contributions that were not tax deductible as charitable contributions? . .
b If "Yes," did the organization include with every solicitation an express statement that such contributions or giftswere not tax deductible? . 6b
7 Organizations that may receive deductible contributions under section 170(c).
a Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and 7a Noservices provided to the payor? .
b If "Yes," did the organization notify the donor of the value of the goods or services provided? . 7b
c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required tofile Form 82827 . . . . . . . . . . . . . . . . . . . . . . . . . . 7c No
d If "Yes," indicate the number of Forms 8282 filed during the year . 7d
e Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefitcontract? . . . . . . . . . . . . . . . . . . . . . . . . . . . 7e N o
f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? 7f No
g If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 asrequired? . 7g
h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file aForm 1098-C? . 7h
8 Sponsoring organizations maintaining donor advised funds.Did a donor advised fund maintained by the sponsoring organization have excess business holdings at any timeduring the year? . . . . . . . . . . . . . . . . . . . . . . . . 8
9a Did the sponsoring organization make any taxable distributions under section 4966? . 9a
b Did the sponsoring organization make a distribution to a donor, donor advisor, or related person? . 9b
10 Section 501(c)(7) organizations. Enter
a Initiation fees and capital contributions included on Part VIII, line 12 . 10a
b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club 10bfacilities
11 Section 501(c)( 12) organizations. Enter
a Gross income from members or shareholders . . . . . . . . 11a
b Gross income from other sources (Do not net amounts due or paid to other sourcesagainst amounts due or received from them ) . . . . . . . . . 11b
12a Section 4947( a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
b If "Yes," enter the amount of tax-exempt interest received or accrued during theyear . . . . . . . . . . . . . . . . . . . 12b
13 Section 501(c)( 29) qualified nonprofit health insurance issuers.
a Is the organization licensed to issue qualified health plans in more than one state?Note . See the instructions for additional information the organization must report on Schedule 0
b Enter the amount of reserves the organization is required to maintain by the statesin which the organization is licensed to issue qualified health plans 13b
c Enter the amount of reserves on hand 13c
12a
13a
14a Did the organization receive any payments for indoor tanning services during the tax year? . . . 14a No
b If "Yes," has it filed a Form 720 to report these payments? If "No,"provide an explanation in Schedule 0 . 14b
Form 990 (2014)
Form 990 ( 2014) Page 6
Lam Governance, Management, and Disclosure For each "Yes" response to lines 2 through 7b below, and for a"No" response to lines 8a, 8b, or 1Ob below, describe the circumstances, processes, or changes in Schedule 0.See instructions.Check if Schedule 0 contains a response or note to any line in this Part VI .F
Section A. Governing Body and Management
la Enter the number of voting members of the governing body at the end of the taxla 24
year
If there are material differences in voting rights among members of the governingbody, or if the governing body delegated broad authority to an executive committeeor similar committee, explain in Schedule 0
b Enter the number of voting members included in line la, above, who areindependent . . . . . . . . . . . . . . . . . lb 21
2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with anyother officer, director, trustee, or key employee?
3 Did the organization delegate control over management duties customarily performed by or under the directsupervision of officers, directors or trustees, or key employees to a management company or other person?
4 Did the organization make any significant changes to its governing documents since the prior Form 990 wasfiled?
5 Did the organization become aware during the year of a significant diversion of the organization's assets?
6 Did the organization have members or stockholders?
7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one ormore members of the governing body? . .
b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders,or persons other than the governing body?
8 Did the organization contemporaneously document the meetings held or written actions undertaken during theyear by the following
a The governing body?
b Each committee with authority to act on behalf of the governing body?
9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at theorganization's mailing address? If "Yes,"provide the names and addresses in Schedule 0 . . . . . . .
Yes I No
2 No
3 No
4 No
5 No
6 No
7a N o
7b No
8a Yes
8b Yes
9 1 1 No
Section B. Policies ( This Section B requests information about p olicies not required b y the Internal Revenue Code.)Yes No
10a Did the organization have local chapters, branches, or affiliates? 10a No
b If "Yes," did the organization have written policies and procedures governing the activities of such chapters,affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? 10b
11a Has the organization provided a complete copy of this Form 990 to all members of its governing body before filingthe form? . . . . . . . . . . . . . . . . . . . . . . . . . . . 11a Yes
b Describe in Schedule 0 the process, if any, used by the organization to review this Form 990
12a Did the organization have a written conflict of interest policy? If "No,"go to line 13 . 12a Yes
b Were officers, directors, or trustees, and key employees required to disclose annually interests that could giverise to conflicts? . . . . . . . . . . . . . . . . . . . . . . . . . 12b Yes
c Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes," describein Schedule 0 how this was done . 12c Yes
13 Did the organization have a written whistleblower policy? 13 Yes
14 Did the organization have a written document retention and destruction policy? . 14 Yes
15 Did the process for determining compensation of the following persons include a review and approval byindependent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a The organization's CEO, Executive Director, or top management official 15a Yes
b Other officers or key employees of the organization 15b Yes
If "Yes" to line 15a or 15b, describe the process in Schedule 0 (see instructions)
16a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with ataxable entity during the year? . . . . . . . . . . . . . . . . . . . . . 16a No
b If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate itsparticipation in joint venture arrangements under applicable federal tax law, and take steps to safeguard theorganization's exempt status with respect to such arrangements? 16b
Section C. Disclosure
17 List the States with which a copy of this Form 990 is required to be filed- NY
18 Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3 )s only) available for public inspection Indicate how you made these available Check all that apply
fl Own website F Another's website F Upon request fl Other (explain in Schedule O )
19 Describe in Schedule 0 whether (and if so, how) the organization made its governing documents, conflict ofinterest policy, and financial statements available to the public during the tax year
20 State the name, address, and telephone number of the person who possesses the organization's books and records-Controller's Office785 Mamaroneck AveWhite Plains, NY 10605 (914) 597-2240
Form 990 (2014)
Form 990 (2014) Page 7
Compensation of Officers , Directors ,Trustees, Key Employees, Highest CompensatedEmployees , and Independent ContractorsCheck if Schedule 0 contains a response or note to any line in this Part VII .F
Section A. Officers, Directors, Trustees, Kev Employees, and Highest Compensated Employees
la Complete this table for all persons required to be listed Report compensation for the calendar year ending with or within the organization'stax year* List all of the organization's current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation Enter-0- in columns (D), (E), and (F) if no compensation was paid
* List all of the organization's current key employees, if any See instructions for definition of "key employee "
* List the organization's five current highest compensated employees (other than an officer, director, trustee or key employee)who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from theorganization and any related organizations
* List all of the organization's former officers, key employees, or highest compensated employees who received more than $100,000of reportable compensation from the organization and any related organizations
* List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of theorganization, more than $10,000 of reportable compensation from the organization and any related organizations
List persons in the following order individual trustees or directors, institutional trustees, officers, key employees, highestcompensated employees, and former such persons
fl Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee
(A) (B) (C) (D) (E) (F)Name and Title Average Position (do not check Reportable Reportable Estimated
hours per more than one box, unless compensation compensation amount of otherweek (list person is both an officer from the from related compensationany hours and a director/trustee) organization (W- organizations (W- from thefor related ;rl 0 = T 2/1099-MISC) 2/1099-MISC) organization andorganizations c 3uo a related
belowm
Q art, organizationsdotted line)
_Q a,
4•4• ^
Form 990 (2014)
Form 990 (2014) Page 8
Section A. Officers, Directors , Trustees , Key Employees, and Highest Compensated Employees (continued)
(A) (B) (C) (D) ( E) (F)Name and Title Average Position (do not check Reportable Reportable Estimated
hours per more than one box, unless compensation compensation amount of otherweek (list person is both an officer from the from related compensationany hours and a director/trustee) organization (W- organizations (W- from thefor related 0- ;rl M= T 2/1099-MISC) 2/1099-MISC) organization andorganizations - boo a related
below 74 m organizationsdotted line) C: 7.
_
SL T! fD
a ;3 ur
c
lb Sub-Total . . . . . . . . . . . . . . . . 0-
c Total from continuation sheets to Part VII, Section A . . . . 0-
d Total ( add lines lb and 1c) . . . . . . . . . . . . 0- 1,353,296 944,956 1,298,883
2 Total number of individuals (including but not limited to those listed above) who received more than$100,000 of reportable compensation from the organization-15
Yes No
3 Did the organization list any former officer, director or trustee, key employee, or highest compensated employee
on line la? If "Yes," complete Schedule] forsuch individual . . . . . . . . . . . . . 3 No
4 For any individual listed on line la, is the sum of reportable compensation and other compensation from theorganization and related organizations greater than $150,000? If "Yes," complete Schedule] forsuch
individual . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Yes
5 Did any person listed on line la receive or accrue compensation from any unrelated organization or individual for
services rendered to the organization? If "Yes," complete Schedule] forsuch person . . . . . . . 5 No
Section B. Independent Contractors
1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of
compensation from the organization Report compensation for the calendar year ending with or within the organization's tax year
(A) (B) (C)Name and business address Description of services Compensation
2 Total number of independent contractors (including but not limited to those listed above) who received more than$100.000 of compensation from the organization -
Form 990 (2014)
Form 990 (2014) Page 9
Statement of RevenueCheck if Schedule 0 contains a response or note to any line in this Part VIII . F
(A) (B) (C) (D)Total revenue Related or Unrelated Revenue
exempt business excluded fromfunction revenue tax underrevenue sections
512-514
la Federated campaigns . laZ
r = b Membership dues . . . . lb6- 0
0 E c Fundraising events . . . . 1c
d Related organizations . ld 4,264,660
tJ'E e Government grants (contributions) le 6,026,951
V f All other contributions, gifts, grants, and if 3,352,034^ similar amounts not included above
g Noncash contributions included in linesla-If $
h Total . Add lines la-1f . 13,643,645
Business Code
2a
b
c
d
e
f All other program service revenue
g Total . Add lines 2a-2f . . . . . . . . 0-
3 Investment income (including dividends, interest,and other similar amounts) . . . . . . . 0-
4 Income from investment of tax-exempt bond proceeds , . 0-
5 Royalties . . . . . . . . . . . 0-
(i) Real (ii) Personal
6a Gross rents
b Less rentalexpenses
c Rental incomeor (loss)
d Net rental inco me or (loss) . . lim-
(i) Securities (ii) Other
7a Gross amountfrom sales ofassets otherthan inventory
b Less cost orother basis andsales expenses
c Gain or (loss)
d Net gain or (loss) . .
8a Gross income from fundraisingW events (not including
$
of contributions reported on line 1c)See Part IV, line 18
a
s b Less direct expenses . b
c Net income or (loss) from fundraising events . . 0-
9a Gross income from gaming activitiesSee Part IV, line 19 . .
a
b Less direct expenses . b
c Net income or (loss) from gaming acti vities . . .0-
10a Gross sales of inventory, lessreturns and allowances .
a
b Less cost of goods sold . b
c Net income or (loss) from sales of inventory . lim-
Miscellaneous Revenue Business Code
11a Employee Benefit Contribution 900099 100,661 100,661
b Purchase Discounts 900099 57 57
C
d All other revenue . .
e Total .Add lines 11a-11d . 0-100,718
12 Total revenue . See Instructions13,744,363 100,718 ,
Form 990 (2014)
Form 990 (2014) Page 10
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns All other organizations must complete column (A)
Check if Schedule 0 contains a response or note to any line in this Part IX . . . . . . . . . . . . . .
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of Part VIII .
(A)
Total expenses
(B)Program service
expenses
(C)Management andgeneral expenses
(D)Fundraisingexpenses
1 Grants and other assistance to domestic organizations anddomestic governments See Part IV, line 21 . . . . 0
2 Grants and other assistance to domesticindividuals See Part IV, line 22 . 0
3 Grants and other assistance to foreign organizations, foreigngovernments , and foreign individuals See Part IV, lines 15and 16 . 0
4 Benefits paid to or for members . 0
5 Compensation of current officers, directors , trustees, and
key employees 1,048,620 41,634 1,006,986
6 Compensation not included above, to disqualified persons(as defined under section 4958( f)(1)) and personsdescribed in section 4958( c)(3)(B) . 0
7 Other salaries and wages 5,212,338 4,589,373 622,965
8 Pension plan accruals and contributions (include section 401(k)
and 403(b) employer contributions ) 259,627 197,622 62,005
9 Other employee benefits 690 ,866 367,462 323,404
10 Payroll taxes 395,554 305,560 89,994
11 Fees for services ( non-employees)
a Management . 0
b Legal 30,410 30,410
c Accounting 28,813 28,813
d Lobbying . 0
e Professional fundraising services See Part IV, line 17
f Investment management fees . 0
g Other ( If line 11g amount exceeds 10 % of line 25, column (A)amount, list line 11g expenses on Schedule O) 0
12 Advertising and promotion 0
13 Office expenses 1,207,836 765,740 442,096
14 Information technology 200,922 200,922
15 Royalties . 0
16 Occupancy . 0
17 Travel . . . . . . . . . . . 201,949 177,813 24,136
18 Payments of travel or entertainment expenses for any federal,state, or local public officials 0
19 Conferences , conventions , and meetings 62,465 10,002 52,463
20 Interest 110,457 110,457
21 Payments to affiliates 0
22 Depreciation , depletion, and amortization 1,412,688 1,412,688
23 Insurance 62,387 11,521 50,866
24 Other expenses Itemize expenses not covered above (Listmiscellaneous expenses in line 24e If line 24e amount exceeds 10%of line 25, column ( A) amount, list line 24e expenses on Schedule 0
a Books Magazines 31,018 30,521 497
b Professional Fees 1,600 ,219 1,600,219
c Equipt Rental 995,751 677,862 317,889
d Physician Remuneration Consortiums 1,608,610 1,557,735 50,875
e All other expenses 0
25 Total functional expenses. Add lines 1 through 24e 15,160,530 8,732,845 6,427,685 0
26 Joint costs. Complete this line only if the organizationreported in column ( B) joint costs from a combinededucational campaign and fundraising solicitation Checkhere - fl if following SOP 98-2 (ASC 958-720)
Form 990 (2014)
Form 990 (2014) Page 11
Balance SheetCheck if Schedule 0 contains a response or note to any line in this Part X F
(A) (B)Beginning of year End of year
1 Cash-non-interest-bearing 2,180,668 1 1,849,213
2 Savings and temporary cash investments 2
3 Pledges and grants receivable, net 1,425,745 3 2,306,208
4 Accounts receivable, net 4
5 Loans and other receivables from current and former officers, directors, trustees, keyemployees, and highest compensated employees Complete Part II ofSchedule L . .
5
6 Loans and other receivables from other disqualified persons (as defined under section4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employersand sponsoring organizations of section 501(c)(9) voluntary employees' beneficiaryorganizations (see instructions) Complete Part II of Schedule L
6
7 Notes and loans receivable, net 7'cc
8 Inventories for sale or use 8
9 Prepaid expenses and deferred charges . 223,472 9 241,530
10a Land, buildings, and equipment cost or other basis CompletePart VI of Schedule D 10a 25,208,749
b Less accumulated depreciation . 10b 16 ,034,079 9,968,723 10c 9,174,670
11 Investments-publicly traded securities . 11
12 Investments-other securities See Part IV, line 11 12
13 Investments-program-related See Part IV, line 11 13
14 Intangible assets . . . . . . . . . . . . . . 14
15 Other assets See Part IV, line 11 32,012 15
16 Total assets . Add lines 1 through 15 (must equal line 34) . 13,830,620 16 13,571,621
17 Accounts payable and accrued expenses 1,522,985 17 1,267,599
18 Grants payable 18
19 Deferred revenue . . . . . . . . . . . . . . . 1,851,692 19 2,169,915
20 Tax-exempt bond liabilities . . . . . . . . . . . . 20
21 Escrow or custodial account liability Complete Part IV of Schedule D 21
22 Loans and other payables to current and former officers, directors, trustees,key employees, highest compensated employees, and disqualified
persons Complete Part II of Schedule L . 22
23 Secured mortgages and notes payable to unrelated third parties 5,906,833 23 5,559,372
24 Unsecured notes and loans payable to unrelated third parties 24
25 Other liabilities (including federal income tax, payables to related third parties,and other liabilities not included on lines 17-24) Complete Part X of ScheduleD . . . . . . . . . . . . . . . . . . . 25 512,189
26 Total liabilities . Add lines 17 through 25 . 9,281,510 26 9,509,075
Organizations that follow SFAS 117 (ASC 958), check here 1- F and complete
4) lines 27 through 29, and lines 33 and 34.
C5 27 Unrestricted net assets 4,549,110 27 4,062,546
Mca 28 Temporarily restricted net assets 28
r29 Permanently restricted net assets 29
_Organizations that do not follow SFAS 117 (ASC 958), check here 1- fl and
complete lines 30 through 34.
30 Capital stock or trust principal, or current funds 30
31 Paid-in or capital surplus, or land, building or equipment fund 31
4T 32 Retained earnings, endowment, accumulated income, or other funds 32
33 Total net assets or fund balances 4,549,110 33 4,062,546
34 Total liabilities and net assets/fund balances 13,830,620 34 13,571,621
Form 990 (2014)
Form 990 (2014) Page 12
« Reconcilliation of Net AssetsCheck if Schedule 0 contains a response or note to any line in this Part XI . F
1 Total revenue (must equal Part VIII, column (A), line 12) . .
2 Total expenses (must equal Part IX, column (A), line 25) . .
3 Revenue less expenses Subtract line 2 from line 1
4 Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A))
5 Net unrealized gains (losses) on investments
6 Donated services and use of facilities
7 Investment expenses . .
8 Prior period adjustments . .
9 Other changes in net assets or fund balances (explain in Schedule 0)
10 Net assets or fund balances at end of year Combine lines 3 through 9 (must equal Part X, line 33,column (B))
1 13,744,363
2 15,160,530
3 -1,416,167
4 4,549,110
5
6
7
8
9 929,603
10 4,062,546
Financial Statements and Reporting
Check if Schedule 0 contains a response or note to any line in this Part XII (-
Yes No
1 Accounting method used to prepare the Form 990 fl Cash 17 Accrual (OtherIf the organization changed its method of accounting from a prior year or checked " Other," explain inSchedule 0
2a Were the organization 's financial statements compiled or reviewed by an independent accountant? 2a
If'Yes,'check a box below to indicate whether the financial statements for the year were compiled or reviewed ona separate basis, consolidated basis, or both
fl Separate basis fl Consolidated basis fl Both consolidated and separate basis
b Were the organization 's financial statements audited by an independent accountant? 2b Yes
If'Yes,'check a box below to indicate whether the financial statements for the year were audited on a separatebasis, consolidated basis, or both
fl Separate basis F Consolidated basis fl Both consolidated and separate basis
c If "Yes," to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of theaudit, review , or compilation of its financial statements and selection of an independent accountant? 2c Yes
If the organization changed either its oversight process or selection process during the tax year, explain inSchedule 0
3a As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the
No
Single Audit Act and OMB Circular A-133? . . . . . . . . . . . . . . . . 3a Yes
b If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the 3b Yesrequired audit or audits, explain why in Schedule 0 and describe any steps taken to undergo such audits
Form 990 (2014)
Additional Data
Software ID : 14000292
Software Version : 14.4.1.0
EIN: 13-3434924
Name : Winifred Masterson Burke Medical Res Ins Inc
Form 990, Part VII - Compensation of Officers, Directors,Trustees, Key Employees, HighestCompensated Employees, and Independent Contractors
(A) (B) (C) (D) (E) (F)Name and Title Average Position (do not check Reportable Reportable Estimated amount
hours per more than one box, unless compensation compensation of otherweek (list person is both an officer from the from related compensationany hours and a director/trustee) organization (W- organizations (W- from thefor related -
'
,^ =-n
2/1099-MISC) 2/1099-MISC) organization andorganizations ID boo LD related
below c m (D 0 r organizationsdotted line) c
_a,
SL 'D 0
(1) Robert J Baldoni 4 00........................................................................ ....................... X X 0 0 0President 2 00
(1) Rajiv Ratan MD PhD 40 00........................................................................ ....................... X X 440,498 0 558,984Vice President 1 00
(2) John J Ryan 1 00........................................................................ ....................... X X 0 444,833 262,522Secret/Treas 40 00
(3) James Ashe MD 1 00........................................................................ ....................... X 0 0 0Trustee
(4) Marcus D Baker 1 00........................................................................ ....................... X 0 0 0Trustee 1 00
(5) M Flint Beal MD 1 00........................................................................ ....................... X 0 0 0Trustee
(6) Alan Leevey MD PhD 1 00........................................................................ ....................... X 0 0 0Trustee
(7) Marie T Filbin PhD 1 00........................................................................ ....................... X 0 0 0Trustee
(8) David Ginty PhD 1 00X 0 0 0
Trustee
(9) Donald Foley 1 00X 0 0 0
Trustee
(10) Mary Beth Walsh MD 1 00........................................................................ ....................... X 0 500,123 252,776Trustee 40 00
(11) Dale E Bredsen MD 1 00........................................................................ ....................... X 0 0 0Trustee
(12) Harel Weinstein DSc 1 00........................................................................ ....................... X 0 0 0Trustee
(13) William Cuddy 1 00........................................................................ ....................... X 0 0 0Trustee
(14) Fred Maxfield MD 1 00................................................................. X 0 0 0Trustee
(15) Beth Ann Mclaughlin PhD 1 00X 0 0 0
Trustee
(16) Christopher] McCarthy 1 00........................................................................ ....................... X 0 0 0Trustee 1 00
(17) Michael LShelanski MD PhD 1 00........................................................................ ....................... X 0 0 0Trustee
(18) Jo- Ann Friedman - Rapaport 1 00........................................................................ ....................... X 0 0 0Trustee
(19) Chris Shoup 1 00........................................................................ ....................... X 0 0 0Trustee
(20) Alfonso Carney Jr 1 00X 0 0 0
Trustee
(21) Pamela Rosenthal MDPhD 1 00X 0 0 0
Trustee
(22) Margaret Keller Sperling 1 00........................................................................ ....................... X 0 0 0Trustee 1 00
(23) Timothy Vartanian MD PhD 1 00........................................................................ ....................... X 0 0 0Trustee
(24) Eric Shipp 35 00........................................................................ ....................... X 141,122 0 37,401Chief Scientific Financial Officer
Form 990, Part VII - Compensation of Officers, Directors,Trustees, Key Employees, HighestCompensated Employees, and Independent Contractors
(A) (B) (C) (D) ( E) (F)Name and Title Average Position (do not check Reportable Reportable Estimated amount
hours per more than one box, unless compensation compensation of otherweek (list person is both an officer from the from related compensationany hours and a director/trustee) organization (W- organizations (W- from thefor related 0 ,o =
-n2/1099-MISC) 2/1099-MISC) organization and
organizations _ relatedbelow m 0 organizations
dotted line) i c rt `
D
(26) Botir Sagdullaev 35 00........................................................................ ....................... X 120,813 0 32,019Research Scientist
(1) Glen Prusky 35 00........................................................................ ....................... X 229,743 0 60,888Research Scientist
(2) Dylan Edwards 35 00........................................................................ ....................... X 144,548 0 38,309Research Scientist
(3) Mary Donohoe 35 00........................................................................ ....................... X 129,745 0 34,386Research/ Scientist
(4) Jason Carmel(4) el
35 00.......... ................................................ .... X 146,827 0 21,598
Research/ Scientist
lefile GRAPHIC print - DO NOT PROCESS I As Filed Data - I DLN: 934932720061651
SCHEDULE A Public Charity Status and Public Support(Form 990 or 990EZ) Complete if the organization is a section 501(c)( 3) organization or a section 4947(a)(1)
nonexempt charitable trust.
Department of the Oil Attach to Form 990 or Form 990-EZ.Treasury Oil Information about Schedule A (Form 990 or 990-EZ) and its instructions is atInternal Revenue Service www.irs.gov/form 990.
Name of the organizationWinifred Masterson Burke Medical Res Ins Inc
OMB No 1545-0047
201 4
Employer identification number
13-3434924
Reason for Public Charity Status (All organizations must complete this part.) See Instructions.The organization is not a private foundation because it is (For lines 1 through 11, check only one box )
1 1 A church, convention of churches, or association of churches described in section 170 ( b)(1)(A)(i).
2 1 A school described in section 170(b)(1)(A)(ii). (Attach Schedule E )
3 1 A hospital or a cooperative hospital service organization described in section 170 ( b)(1)(A)(iii).
4 F A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the
hospital's name, city, and stateWinifred Masterson Burke Rehabilitation Hospital,
White Plains, NY5 fl An organization operated for the benefit of a college or university owned or operated by a governmental unit described in
section 170 ( b)(1)(A)(iv ). (Complete Part II )
6 fl
7 n
8 fl
9 fl
10 fl
11 n
a fl
b fl
c fl
d fl
e fl
A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).
An organization that normally receives a substantial part of its support from a governmental unit or from the general publicdescribed in section 170 ( b)(1)(A)(vi ). (Complete Part II )A community trust described in section 170 ( b)(1)(A)(vi ) (Complete Part II )
An organization that normally receives (1) more than 331/3% of its support from contributions, membership fees, and gross
receipts from activities related to its exempt functions-subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975 See section 509(a)(2). (Complete Part III )
An organization organized and operated exclusively to test for public safety See section 509(a)(4).
An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes ofone or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2) See section 509(a)(3). Checkthe box in lines 11 a through 11d that describes the type of supporting organization and complete lines Ile, 11f, and 11gType I . A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving thesupported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supportingorganization You must complete Part IV, Sections A and B.Type II . A supporting organization supervised or controlled in connection with its supported organization(s), by having control ormanagement of the supporting organization vested in the same persons that control or manage the supported organization(s) Youmust complete Part IV, Sections A and C.Type III functionally integrated . A supporting organization operated in connection with, and functionally integrated with, itssupported organization(s) (see instructions ) You must complete Part IV, Sections A, D, and E.Type III non-functionally integrated . A supporting organization operated in connection with its supported organization(s) that isnot functionally integrated The organization generally must satisfy a distribution requirement and an attentiveness requirement(see instructions) You must complete Part IV, Sections A and D, and Part V.Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionallyintegrated, or Type III non-functionally integrated supporting organization
Enter the number of supported organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provide the following information about the supported organization(s)
(i)Name of supportedorganization
(ii) EIN (iii) Type oforganization
(described on lines1- 9 above orIRC
section (seeinstructions))
(iv) Is the organizationlisted in your governing
document?
(v) Amount ofmonetary support(see instructions)
(vi) Amount ofother support (see
instructions)
Yes No
Total
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ . Cat No 11285F Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014 Page 2
MU^ Support Schedule for Organizations Described in Sections 170(b )( 1)(A)(iv) and 170(b)(1)(A)(vi)(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify underPart III. If the organization fails to qualify under the tests listed below, please complete Part III.)
Section A . Public SupportCalendar year ( or fiscal year beginning (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total
in) 111111 Gifts, grants, contributions, and
membership fees received (Do notinclude any "unusualgrants ")
2 Tax revenues levied for theorganization's benefit and eitherpaid to or expended on itsbehalf
3 The value of services or facilitiesfurnished by a governmental unit tothe organization without charge
4 Total .Add lines 1 through 3
5 The portion of total contributionsby each person (other than agovernmental unit or publiclysupported organization) included online 1 that exceeds 2% of theamount shown on line 11, column(f)
6 Public support . Subtract line 5 fromline 4
Section B. Total SupportCalendar year ( or fiscal year beginning (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total
in) ►7 Amounts from line 4
8 Gross income from interest,dividends, payments received onsecurities loans, rents, royaltiesand income from similarsources
9 Net income from unrelatedbusiness activities, whether or notthe business is regularly carriedon
10 Other income Do not include gainor loss from the sale of capitalassets (Explain in Part VI )
11 Total support Add lines 7 through10
12 Gross receipts from related activities, etc (see instructions) 12
13 First five years. If the Form 990 is for the organization 's first, second, third, fourth, or fifth tax year as a section 501(c)(3)organization, check this box and stop here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ItE
Section C. Com p utation of Public Support Percenta g e14 Public support percentage for 2014 (line 6, column (f) divided by line 11, column (f)) 14 0 %
15 Public support percentage for 2013 Schedule A, Part II, line 14 15
16a 33 1 / 3% support test-2014. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this boxand stop here . The organization qualifies as a publicly supported organization
b 33 1 / 3%support test -2013. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check thisbox and stop here . The organization qualifies as a publicly supported organization
17a 10%-facts-and -circumstances test-2014. If the organization did not check a box on line 13, 16a, or 16b, and line 14is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here . Explainin Part VI how the organization meets the "facts-and-circumstances" test The organization qualifies as a publicly supportedorganization
b 10%-facts-and-circumstances test - 2013. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line15 is 10% or more, and if the organization meets the "facts- and-circumstances" test, check this box and stop here.Explain in Part VI how the organization meets the "facts-and-circumstances" test The organization qualifies as a publiclysupported organization
18 Private foundation . If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and seeinstructions
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014 Page 3
IMMITM Support Schedule for Organizations Described in Section 509(a)(2)(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify underPart II. If the organization fails to qualify under the tests listed below, please complete Part II.)
Section A . Public SupportCalendar year ( or fiscal year beginning (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total
in) 111111 Gifts, grants, contributions, and
membership fees received (Do notinclude any "unusual grants ")
2 Gross receipts from admissions,merchandise sold or servicesperformed, or facilities furnished inany activity that is related to theorganization's tax-exemptpurpose
3 Gross receipts from activities thatare not an unrelated trade orbusiness under section 513
4 Tax revenues levied for theorganization's benefit and eitherpaid to or expended on itsbehalf
5 The value of services or facilitiesfurnished by a governmental unit tothe organization without charge
6 Total . Add lines 1 through 5
7a Amounts included on lines 1, 2,and 3 received from disqualifiedpersons
b Amounts included on lines 2 and 3received from other thandisqualified persons that exceedthe greater of$5,000 or 1% of theamount on line 13 for the year
c Add lines 7a and 7b
8 Public support (Subtract line 7cfrom line 6 )
Section B. Total SuuuortCalendar year ( or fiscal year beginning (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total
in) ►9 Amounts from line 6
10a Gross income from interest,dividends, payments received onsecurities loans, rents, royaltiesand income from similarsources
b Unrelated business taxableincome (less section 511 taxes)from businesses acquired afterJune 30, 1975
c Add lines 10a and 10b
11 Net income from unrelatedbusiness activities not includedin line 10b, whether or not thebusiness is regularly carried on
12 Other income Do not includegain or loss from the sale ofcapital assets (Explain in PartVI )
13 Total support . (Add lines 9, 1Oc,11, and 12 )
14 First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization,check this box and stop here
Section C. Computation of Public Support Percentage
15 Public support percentage for 2014 (line 8, column (f) divided by line 13, column (f)) 15 0 %
16 Public support percentage from 2013 Schedule A, Part III, line 15 16
Section D . Com p utation of Investment Income Percenta g e17 Investment income percentage for 2014 (line 10c, column (f) divided by line 13, column (f)) 17 0 %
18 Investment income percentage from 2013 Schedule A, Part III, line 17 18
19a 33 1/3%support tests-2014. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is notmore than 33 1/3%, check this box and stop here . The organization qualifies as a publicly supported organization lk'F-
b 33 1 / 3% support tests-2013. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line18 is not more than 33 1/3%, check this box and stop here . The organization qualifies as a publicly supported organization llik^F_
20 Private foundation . If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions llik^F_
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014 Page 4
LQ&MSupporting Organizations
(Complete only if you checked a box on line 11 of Part I If you checked 11a of Part I, complete Sections A and B If you checked11b of Part I, complete Sections A and C If you checked 11c of Part I, complete Sections A, D, and E If you checked 11d of PartI, complete Sections A and D, and complete Part V
Section A . All Sunnortina Organizations
Yes I No
1 Are all of the organization's supported organizations listed by name in the organization's governing documents?If "No,"describe in Part VI how the supported organizations are designated. If designated by class or purpose,describe the designation. If historic and continuing relationship, explain. 1
2 Did the organization have any supported organization that does not have an IRS determination of status undersection 509(a)(1) or (2)7 If "Yes," explain in Part VI how the organization determined that thesupportedorganization was described in section 509(a)(1) or (2). 2
3a Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer(b) and (c) below. 3a
b Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) andsatisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how theorganization made the determination. 3b
c Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B)purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use. 3c
4a Was any supported organization not organized in the United States ("foreign supported organization")? If "Yes"and if you checked 11a or 11b in Part I, answer (b) and (c) below. 4a
b Did the organization have ultimate control and discretion in deciding whether to make grants to the foreignsupported organization? If "Yes,"describe in Part VI how the organization had such control and discretion despite
4bbeing controlled or supervised by or in connection with its supported organizations. . . .
c Did the organization support any foreign supported organization that does not have an IRS determination undersections 5 0 1 ( c ) ( 3 ) and 509 (a)(1) or (2 )? If "Yes," explain in Part VI what controls the organization used to ensurethat all support to the foreign supported organization was used exclusively for section 170(c)(2)(8) purposes. 4c
5a Did the organization add, substitute, or remove any supported organizations during the tax year? If "Yes,"answer(b) and (c) below Of applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of thesupported organizations added, substituted, or removed, (n) the reasons for each such action, (in) the authority underthe organization's organizing document authorizing such action, and (iv) how the action was accomplished (such as byamendment to the organizing document). 5a
b Type I or Type II only . Was any added or substituted supported organization part of a class already designated inthe organization's organizing document? 5b
c Substitutions only. Was the substitution the result of an event beyond the organization's control? 5c
6 Did the organization provide support (whether in the form of grants or the provision of services or facilities) toanyone other than (a) its supported organizations, (b) individuals that are part of the charitable class benefited bone or more of its supported organizations, or (c) other supporting organizations that also support or benefit oneor more of the filing organization's supported organizations? If "Yes,"provide detail in Part VI.
7 Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor(defined in IRC 4958(c)(3 )(C )), a family member of a substantial contributor, or a 35-percent controlled entitywith regard to a substantial contributor? If "Yes,"complete Part I of Schedule L (Form 990).
8 Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If"Yes,"complete Part II of Schedule L (Form 990). 8
9a Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualifiedpersons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2 ))7 If "Yes, "provide detail in Part VI. 9a
b Did one or more disqualified persons (as defined in line 9(a)) hold a controlling interest in any entity in which thesupporting organization had an interest? If "Yes,"provide detail in Part VI. 9b
c Did a disqualified person ( as defined in line 9 ( a)) have an ownership interest in , or derive any personal benefitfrom, assets in which the supporting organization also had an interest? If "Yes, "provide detai l in Part VI.
9c
10a Was the organization subject to the excess business holdings rules ofIRC 4943 because ofIRC 4943(f)(regarding certain Type II supporting organizations, and all Type III non-functionally integrated supportingorganizations)? If "Yes,"answerb below. 10a
b Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determinewhether the organization had excess business holdings).
lOb
11 Has the organization accepted a gift or contribution from any of the following persons?
a A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below,the governing body of a supported organization?
lla
b A family member of a person described in (a) above? 11b
c A 35% controlled entity of a person described in (a) or (b) above? If "Yes"to a, b, orc, provide detail in Part VI. 11c
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014 Page 5
Li^ Supporting Organizations (continued)
Section B. Tvne I Sunnortina Organizations
No
1 Did the directors, trustees, or membership of one or more supported organizations have the power to regularlyappoint or elect at least a majority of the organization's directors or trustees at all times during the tax year? If"No,"describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled theorganization's activities. If the organization had more than one supported organization, describe how the powers toappoint and/or remove directors or trustees were allocated among the supported organizations and what conditions orrestrictions, if any, applied to such powers during the tax year.
2 Did the organization operate for the benefit of any supported organization other than the supported organization(sthat operated, supervised, or controlled the supporting organization? If "Yes,"explain in Part VI how providingsuch benefit carried out the purposes of the supported organization(s) that operated, supervised or controlled thesupporting organization.
Section C. Type II Supporting Organizations
1 Were a majority of the organization's directors or trustees during the tax year also a majority of the directors ortrustees of each of the organization's supported organization(s)? If "No,"describe in Part VI how control ormanagement of the supporting organization was vested in the same persons that controlled or managed the supportedorganization(s).
No
Section D . All Type III Supporting Organizations
1 Did the organization provide to each of its supported organizations, by the last day of the fifth month of theorganization's tax year, (1) a written notice describing the type and amount of support provided during the priortax year, (2) a copy of the Form 990 that was most recently filed as of the date of notification, and (3) copies ofthe organization's governing documents in effect on the date of notification, to the extent not previously provided
2 Were any of the organization's officers, directors, or trustees either (i) appointed or elected by the supportedorganization(s) or (ii) serving on the governing body of a supported organization? If "No,"explain in Part VI howthe organization maintained a close and continuous working relationship with the supported organization(s).
3 By reason of the relationship described in (2), did the organization's supported organizations have a significantvoice in the organization's investment policies and in directing the use of the organization's income or assets atall times during the tax year? If "Yes,"describe in Part VI the role the organization's supported organizations playedin this regard.
No
Section E. Type III Functionally-Integrated Supporting Organizations
Check the box next to the method that the organization used to satisfy the Integral Part Test during the year ( see instructions)
a fl The organization satisfied the Activities Test Complete line 2 below
b fl The organization is the parent of each of its supported organizations Complete line 3 below
c fl The organization supported a governmental entity Describe in Part VI how you supported a government entity (seeinstructions)
2 Activities Test Answer ( a) and ( b) below.
a Did substantially all of the organization's activities during the tax year directly further the exempt purposes of thesupported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify thosesupported organizations and explain how these activities directly furthered their exempt purposes, how theorganization was responsive to those supported organizations, and how the organization determined that theseactivities constituted substantially all of its activities.
b Did the activities described in (a) constitute activities that, but for the organization's involvement, one or more ofthe organization's supported organization(s) would have been engaged in? If "Yes,"explain in Part VI the reasonsfor the organization's position that its supported organization(s) would have engaged in these activities but for theorganization's involvement.
3 Parent of Supported Organizations Answer ( a) and ( b) below.
a Did the organization have the power to regularly appoint or elect a majority of the officers , directors , or trustees oeach of the supported organizations? Provide details in Part VI.
b Did the organization exercise a substantial degree of direction over the policies, programs and activities of eachof its supported organizations? If "Yes,"describe in Part VI the role played by the organization in this regard.
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014 Page 6
Part V - Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations
1 1 Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov 20, 1970 See instructions . All otherType III non-functionally integrated supporting organizations must complete Sections A through E
Section A - Adjusted Net Income I (A) Prior Year I (B) Current Year
(optional)
1 Net short-term capital gain 1
2 Recoveries of prior-year distributions 2
3 Other gross income (see instructions) 3
4 Add lines 1 through 3 4
5 Depreciation and depletion 5
6Portion of operating expenses paid or incurred for production or collection ofgross income or for management, conservation, or maintenance of propertyheld for production of income (see instructions) 6
7 Other expenses (see instructions) 7
8 Adjusted Net Income (subtract lines 5, 6 and 7 from line 4) 8
Section B - Minimum Asset Amount (A) Prior Year I (B) Current Year
(optional)
1 Aggregate fair market value of all non-exempt-use assets (seeinstructions for short tax year or assets held for part of year) 1
a Average monthly value of securities la
b Average monthly cash balances lb
c Fair market value of other non-exempt-use assets 1c
d Total (add lines la, 1b, and 1c) ld
e
2
Discount claimed for blockage or other factors (explain in detail in PartVI)
Acquisition indebtedness applicable to non-exempt use assets 2
3 Subtract line 2 from line ld 3
4 Cash deemed held for exempt use Enter 1-1/2% of line 3 (for greateramount, see instructions) 4
5 Net value of non-exempt-use assets (subtract line 4 from line 3) 5
6 Multiply line 5 by 035 6
7 Recoveries of prior-year distributions 7
8 Minimum Asset Amount (add line 7 to line 6) 8
Section C - Distributable Amount Current Year
1 Adjusted net income for prior year (from Section A, line 8, Column A) 1
2 Enter 85% of line 1 2
3 Minimum asset amount for prior year (from Section B, line 8, Column A) 3
4 Enter greater of line 2 or line 3 4
5 Income tax imposed in prior year 5
6 Distributable Amount . Subtract line 5 from line 4, unless subject to emergency temporaryreduction (see instructions) 6
7 F- Check here if the current year is the organization's first as a non-functionally-integrated
Type III supporting organization (see instructions)
Schedule A (Form 990 or 990-EZ) 2014
Schedule A (Form 990 or 990-EZ) 2014 Page 7
Section D - Distributions Current Year
1 Amounts paid to supported organizations to accomplish exempt purposes
2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, inexcess of income from activity
3 Administrative expenses paid to accomplish exempt purposes of supported organizations
4 Amounts paid to acquire exempt-use assets
5 Qualified set-aside amounts (prior IRS approval required)
6 Other distributions (describe in Part VI) See instructions
7 Total annual distributions . Add lines 1 through 6
8 Distributions to attentive supported organizations to which the organization is responsive (providedetails in Part VI) See instructions
9 Distributable amount for 2014 from Section C, line 6
10 Line 8 amount divided by Line 9 amount
Section E - Distribution Allocations ( see
instructions )
(i)Excess Distributions
Underdist r
ibutionsPre-2014
(^^^)Distributable
Amount for 2014
1 Distributable amount for 2014 from Section C, line6
2 U nderdistributions, if any, for years prior to 2014(reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2014
a From 2009.
b From 2010.
c From 2011.
d From 2012.
e From 2013.
f Total of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2014 distributable amount
i Carryover from 2009 not applied (seeinstructions)
j Remainder Subtract lines 3g, 3h, and 3i from 3f
4 Distributions for 2014 from Section D, line 7
a Applied to underdistributions of prior years
b Applied to 2014 distributable amount
c Remainder Subtract lines 4a and 4b from 4
5 Remaining underdistributions for years prior to2014, if any Subtract lines 3g and 4a from line 2(if amount greater than zero, see instructions)
6 Remaining underdistributions for 2014 Subtractlines 3h and 4b from line 1 (if amount greater thanzero, see instructions)
7 Excess distributions carryoverto 2015 . Add lines3j and 4c
8 Breakdown of line 7
a From 2010.
b From 2011.
c From 2012.
d From 2013.
e From 2014.
Schedule A (Form 990 or 990-EZ) (2014)
Schedule A (Form 990 or 990-EZ) 2014 Page 8
Supplemental Information . Provide the explanations required by Part II, line 10; Part II, line 17a or 17b;Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV,Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines1c, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line le; Part V Section D, lines 5, 6, and 8; and PartV, Section E, lines 2, 5, and 6. Also complete this Dart for any additional information. (See instructions).
Facts And Circumstances Test
Return Reference Explanation
Schedule A (Form 990 or 990-EZ) 2014
lefile GRAPHIC print - DO NOT PROCESS As Filed Data - DLN: 93493272006165
SCHEDULE D Supplemental Financial StatementsOMB No 1545-0047
(Form 990)Complete if the organization answered "Yes," to Form 990,0- 2014
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f , 12a, or 12b.
Department of the Treasury 0- Attach to Form 990. • . -
Internal Revenue Service Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990 .
Name of the organization Employer identification numberWinifred Masterson Burke Medical Res Ins Inc
13-3434924Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts . Complete if theorg anization answered "Yes" to Form 990 , Part IV , line 6.
(a) Donor advised funds (b) Funds and other accounts
1 Total number at end of year
2 Aggregate value of contributions to (during year)
3 Aggregate value of grants from (during year)
4 Aggregate value at end of year
5 Did the organization inform all donors and donor advisors in writing that the assets held in donor advisedfunds are the organization's property, subject to the organization's exclusive legal control? F Yes I No
6 Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can beused only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purposeconferring impermissible private benefit? fl Yes fl No
MRSTI-Conservation Easements . Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1 Purpose(s) of conservation easements held by the organization (check all that apply)
1 Preservation of land for public use (e g , recreation or education) 1 Preservation of an historically important land area
1 Protection of natural habitat 1 Preservation of a certified historic structure
fl Preservation of open space
2 Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservationeasement on the last day of the tax year
a Total number of conservation easements
b Total acreage restricted by conservation easements
c Number of conservation easements on a certified historic structure included in (a)
d Number of conservation easements included in (c) acquired after 8/17/06, and not on ahistoric structure listed in the National Register
Held at the End of the Year
2a
2b
2c
2d
3 N umber of conservation easements modified, transferred , released, extinguished, or terminated by the organization during
the tax year 0-
4 N umber of states where property subject to conservation easement is located 0-
5 Does the organization have a written policy regarding the periodic monitoring , inspection, handling of violations, andenforcement of the conservation easements it holds? fl Yes fl No
6 Staff and volunteer hours devoted to monitoring , inspecting , and enforcing conservation easements during the year
0-
7 Amount of expenses incurred in monitoring , inspecting , and enforcing conservation easements during the year
0- $
8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i)and section 170(h)(4)(B)(ii)? F Yes 1 No
9 In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, andbalance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describesthe organization's accounting for conservation easements
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.Complete if the oraanization answered "Yes" to Form 990. Part IV. line 8.
la If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheetworks of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of publicservice, provide, in Part XIII, the text of the footnote to its financial statements that describes these items
b If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheetworks of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of publicservice, provide the following amounts relating to these items
(i) Revenue included in Form 990, Part VIII, line 1 $
(ii)Assets included in Form 990, Part X $
2 If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide thefollowing amounts required to be reported under SFAS 116 (ASC 958) relating to these items
a Revenue included in Form 990, Part VIII, line 1 $
b Assets included in Form 990, Part X $
For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 52283D Schedule D ( Form 990) 2014
Schedule D (Form 990) 2014 Page 2
r:FTnFW Organizations Maintaining Collections of Art, Historical Treasures , or Other Similar Assets (continued)
3 Using the organization's acquisition, accession, and other records, check any of the following that are a significant use of itscollection items (check all that apply)
a F_ Public exhibition d fl Loan or exchange programs
b 1 Scholarly research e (- Other
c F Preservation for future generations
4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose inPart XIII
5 During the year, did the organization solicit or receive donations of art, historical treasures or other similarassets to be sold to raise funds rather than to be maintained as part of the organization's collection? 1 Yes 1 No
Escrow and Custodial Arrangements . Complete if the organization answered "Yes" to Form 990,Part IV, line 9, or reported an amount on Form 990, Part X, line 21.
la Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets notincluded on Form 990, Part X7 1 Yes F No
b If "Yes," explain the arrangement in Part XIII and complete the following table
c Beginning balance 1c
d Additions during the year ld
e Distributions during the year le
f Ending balance if
A mount
2a Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability? 1 Yes F No
b If "Yes," explain the arrangement in Part XIII Check here if the explanation has been provided in Part XIII . . . . . . . 1
MITIT-Endowment Funds . Com p lete If the org anization answered "Yes" to Form 990, Part IV , line 10.
la Beginning of year balance .
b Contributions
c Net investment earnings, gains, and losses
d Grants or scholarships
e Other expenditures for facilitiesand programs
f Administrative expenses .
g End of year balance
(a)Current year (b)Prior year b (c)Two years back (d)Three years back (e)Four years back
2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as
a Board designated or quasi-endowment 0-
b Permanent endowment 0-
c Temporarily restricted endowment 0-
The percentages in lines 2a, 2b, and 2c should equal 100%
3a Are there endowment funds not in the possession of the organization that are held and administered for theorganization by Yes No
(i) unrelated organizations . . . . . . . . . . . . . . . . . . . . . . . . 3a(i)
(ii) related organizations . . . . . . . . . . . . . . . . . . . . . . 3a(ii)
b If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? . . I 3b
4 Describe in Part XIII the intended uses of the organization's endowment funds
Land , Buildings, and Equipment . Complete if the organization answered 'Yes' to Form 990, Part IV, line1 1 a See Form 990 Part X line 1(l
Description of property (a) Cost or otherbasis ( investment )
(b)Cost or otherbasis (other)
(c) Accumulateddepreciation
( d) Book value
la Land
b Buildings 13 ,142,951 6,264,124 6,878,827
c Leasehold improvements . .
d Equipment 12,065,798 9,769,955 2,295,843
e Other
Total . Add lines la through 1 e (Column (d) must equal Form 990, Part X, column (B), line 10 (c).) . . 0- 9,174,670
Schedule D (Form 990) 2014
Schedule D (Form 990) 2014 Page 3
Investments-Other Securities . Complete if the organization answered 'Yes' to Form 990, Part IV, line 11b.See Form 990 , Part X line 12.
(a) Description of security or category (b)Book value (c) Method of valuation(including name of security) Cost or end-of-year market value
(1 )Financial derivatives
(2)Closely-held equity interests
(3)Other(A) Financial derivatives and other financial Droducts
(B) Closely-held equity interests
Total . (Column (b) must equa l Form 990, Part X, col (B) line 12 ) 11.
Form QQn Part Y lino 7S
Schedule D (Form 990) 2014
Investments-Program Related . Complete if the organization answered 'Yes' to Form 990, Part IV, line 11c.Caa Form QQ(1 Dart X lino 1 -^
2. Liability for uncertain tax positions In Part XIII, provide the text of the footnote to the organization ' s financial statements that reports theorganization ' s liability for uncertain tax positions under FIN 48 (ASC 740 ) Check here if the text of the footnote has been provided in PartXIII F
Schedule D (Form 990) 2014 Page 4
Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete ifthe org anization answered 'Yes' to Form 990 , Part IV line 12a.
1 Total revenue, gains, and other support per audited financial statements . 1 13,744,363
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12
a Net unrealized gains (losses) on investments 2a
b Donated services and use of facilities . 2b
c Recoveries of prior year grants 2c
d Other (Describe in Part XIII ) 2d
e Add lines 2a through 2d . . . . . . . . . . . . . . . . . . . . 2e
3 Subtract line 2e from line 1 . . . . . . . . . . . . . . . . . . . . 3 13,744,363
4 Amounts included on Form 990, Part VIII, line 12, but not on line 1
a Investment expenses not included on Form 990, Part VIII, line 7b . 4a
b Other (Describe in Part XIII ) . . . . . . . . . . 4b
c Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . 4c
5 Total revenue Add lines 3 and 4c. (This must equal Form 990, Part I, line 12 ) . . . . . 5 13,744,363
« Reconciliation of Expenses per Audited Financial Statements With Expenses per Return . Completeif the org anization answered 'Yes' to Form 990 , Part IV line 12a.
1 Total expenses and losses per audited financial statements 1 15,160,530
2 Amounts included on line 1 but not on Form 990, Part IX, line 25
a Donated services and use of facilities . 2a
b Prior year adjustments 2b
c Other losses . . . . . . . . . . . . . . . 2c
d Other (Describe in Part XIII ) . . . . . . . . . . . 2d
e Add lines 2a through 2d . . . . . . . . . . . . . . . . . . . . . 2e
3 Subtract line 2e from line 1 . . . . . . . . . . . . . . . . . . . . 3 15,160,530
4 Amounts included on Form 990, Part IX, line 25, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b 4a
b Other (Describe in Part XIII ) . . . . . . . . . . . 4b
c Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . 4c
5 Total expenses Add lines 3 and 4c. (This must equal Form 990, Part I, line 18 ) . . . . . 5 15,160,530
UT1174M Supplemental Information
Provide the descriptions required for Part II, lines 3, 5, and 9, Part III, lines la and 4, Part IV, lines lb and 2b,Part V, line 4, Part X, line 2, Part XI, lines 2d and 4b, and Part XII, lines 2d and 4b Also complete this part to provide any additionalinformation
Return Reference Explanation
Schedule D (Form 990) 2014
Schedule D (Form 990) 2014
Schedule D (Form 990) 2013 Page 5
l efile GRAPHIC p rint - DO NOT PROCESS As Filed Data - DLN: 93493272006165
Schedule J Compensation Information OMB No 1545-0047
(Form 990)For certain Officers, Directors, Trustees, Key Employees, and Highest
2014Compensated Employees1- Complete if the organization answered "Yes" to Form 990, Part IV, line 23.
Department of the Treasury 1- Attach to Form 990.Internal Revenue Service 1- Information about Schedule J (Form 990) and its instructions is at www.irs.gov/form990.
Name of the organization Employer identification numberWinifred Masterson Burke Medical Res Ins Inc
13-3434924
MYRTE Questions Re g arding Com pensation
Yes No
la Check the appropiate box(es ) if the organization provided any of the following to or for a person listed in Form990, Part VII , Section A, line la Complete Part III to provide any relevant information regarding these items
1 First-class or charter travel 1 Housing allowance or residence for personal use
1 Travel for companions 1 Payments for business use of personal residence
1 Tax idemnification and gross - up payments 1 Health or social club dues or initiation fees
1 Discretionary spending account 1 Personal services ( e g , maid, chauffeur, chef)
b If any of the boxes in line la are checked, did the organization follow a written policy regarding payment orreimbursement or provision of all of the expenses described above? If "No ," complete Part III to explain lb
2 Did the organization require substantiation prior to reimbursing or allowing expenses incurred by alldirectors , trustees , officers, including the CEO/Executive Director, regarding the items checked in line la? 2
3 Indicate which , if any, of the following the filing organization used to establish the compensation of theorganization 's CEO/Executive Director Check all that apply Do not check any boxes for methodsused by a related organization to establish compensation of the CEO /Executive Director, but explain in Part III
F Compensation committee 1 Written employment contract
1 Independent compensation consultant F Compensation survey or study
F Form 990 of other organizations F Approval by the board or compensation committee
4 During the year, did any person listed in Form 990, Part VII, Section A, line la with respect to the filing organizationor a related organization
a Receive a severance payment or change-of-control payment? 4a No
b Participate in, or receive payment from, a supplemental nonqualified retirement plan? 4b No
c Participate in, or receive payment from, an equity-based compensation arrangement? 4c No
If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III
Only 501 ( c)(3), 501 ( c)(4), and 501 ( c)(29) organizations must complete lines 5-9.
5 For persons listed in Form 990, Part VII, Section A, line la, did the organization pay or accrue anycompensation contingent on the revenues of
a The organization? 5a No
b Any related organization? 5b No
If "Yes," to line 5a or 5b, describe in Part III
6 For persons listed in Form 990, Part VII, Section A, line la, did the organization pay or accrue anycompensation contingent on the net earnings of
a The organization? 6a No
b Any related organization? 6b No
If "Yes," to line 6a or 6b, describe in Part III
7 For persons listed in Form 990, Part VII, Section A, line la, did the organization provide any non-fixedpayments not described in lines 5 and 6? If "Yes," describe in Part III 7 No
8 Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that wassubject to the initial contract exception described in Regulations section 53 4958-4(a)(3)? If "Yes," describein Part III 8 No
9 If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulationssection 53 4958-6(c)? 9
For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 50053T Schedule 3 ( Form 990) 2014
Schedule J (Form 990) 2014 Page 2
Officers, Directors , Trustees , Key Employees, and Highest Compensated Employees . Use duplicate copies if additional space is needed.For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in theinstructions, on row (ii) Do not list any individuals that are not listed on Form 990, Part VIINote . The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line la, applicable column (D) and (E) amounts for that individual
(A) Name and Title (B ) Breakdown of W-2 and/or 1099-MISC compensation ( C) Retirement and (D) Nontaxable (E) Total of columns ( F) Compensation in
(ii) Bonus & (iii) Other other deferred benefits (B)(i)-(D) column(B) reported(i) Base incentive reportable compensation as deferred in prior
compensationcompensation compensation Form 990
1 Rajiv Ratan MD PhD, Vice (^) 440,498 467,000 46,150 45,834 999,482President
(ii) ............................... ............................... ............................... ............................... ............................... ...............................
2 John J Ryan , Secret/Treas 0)...............................
444,833............................... ............................... ...............................
129,324...............................
133,198...............................
707,355...............................
3 Mary Beth Walsh MD, (^)Trustee ............................... ............................... ............................... ............................... ............................... ............................... ...............................
500,123 170,355 82,421 752,899
4 Eric Shipp, Chief Scientific0)
141,122 37,401 178, 523Financial Officer
(ii) ............................... ............................... ............................... ............................... ............................... ...............................
5 Botir Sagdullaev , Research (^) 120,813 32,019 152,832Scientist (^^) ............................... ............................... ............................... ............................... ............................... ...............................
6 Glen Prusky , Research (^) 229,743 60,888 290,631Scientist
(ii) ............................... ............................... ............................... ............................... ............................... ...............................
7 Dylan Edwards , Research (^) 144,548 38,309 182,857Scientist
(ii) ............................... ............................... ............................... ............................... ............................... ...............................
8 Mary Donohoe , Research/ (^) 129,745 34,386 164,131Scientist
(ii) ............................... ............................... ............................... ............................... ............................... ...............................
9 Jason Carmel , Research/ (^) 141,122 21,598 162,720Scientist (^^) ............................... ............................... ...............................
Schedule 3 (Form 990) 2014
Schedule J (Form 990) 2014 Page 3
Supplemental InformationProvide the information, explanation, or descriptions required for Part I, lines la, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part IIAlso complete this part for any additional information
Return Reference I Explanation
Schedule 3 (Form 990) 2014
Additional Data
Software ID : 14000292
Software Version : 14.4.1.0
EIN: 13-3434924
Name : Winifred Masterson Burke Medical Res Ins Inc
Form 990, Schedule J . Part II - Officers , Directors, Trustees , Key Employees , and Highest Compensated Employees
(A) Name and Title (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and (D) Nontaxable (E) Total of columns (F) Compensation in
(i) Base (ii) Bonus & (iii) Other other deferred benefits (B)(i)-(D) column (B)reported as deferred in
Compensation incentive reportable compensation prior Form 990compensation compensation
1 Rajiv Ratan MD PhD, (i) 440,498 467,000 46,150 45,834 999,482Vice President (^^)
1 John J Ryan, (^)Secret/Treas (11) 444,833 129,324 133,198 707,355
2 Mary Beth Walsh MD, (^)Trustee (ii) 500,123 170,355 82,421 752,899
3 Eric Shipp, Chief (i) 141,122 37,401 178,523Scientific Financial Officer (^^)
4 BotirSagdullaev, (i) 120,813 32,019 152,832Research Scientist (II)
5 Glen Prusky, Research (1) 229,743 60,888 290,631Scientist (^ ^ )
6 Dylan Edwards, Research (i) 144,548 38,309 182,857Scientist (^ )
7 Mary Donohoe, (i) 129,745 34,386 164,131Research/ Scientist (II)
8 Jason Carmel, Research/ (i) 141,122 21,598 162,720Scientist (^ )
efile GRAPHIC p rint - DO NOT PROCESS As Filed Data - DLN: 93493272006165
SCHEDULE 0OMB No 1545 0047
(Form 990 or 990-EZ) Supplemental Information to Form 990 or 990-EZ2014
Department of the Treasury Complete to provide information for responses to specific questions onForm 990 or 990-EZ or to provide any additional information . Open
Internal Revenue Service1- Attach to Form 990 or 990-EZ. Inspection
1- Information about Schedule 0 (Form 990 or 990-EZ) and its instructions is atwww.irs.aov /form990.
Name of the organizationWinifred Masterson Burke Medical Res Ins Inc
Employer identification number
13-3434924
990 Schedule 0, Supplemental Information
Return Reference Explanation
Form 990, Part I, Line 1
Form 990, Part VIII, Line 9 CONTRIBUTIONS 0, CHANGE IN FAIR VALUE OF INTEREST RATE CAP -30,906, NET ASSETS RELEASEDFROM RESTRICTIONS 545,275, TRANSFERS TO AFFILIATES 415,234
Form 990, Part VI, Section A, Line ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES OF THE WINIFRED MASTERSON BURKE12C REHABILITA
TION HOSPITAL AND SUBSIDIARIES ARE REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTERESTQUESTIONNAIRE COMPLETED QUESTIONNAIRES ARE REVIEWED BY THE CHAIRMAN OF THE EXECUTIVECOMMITTEE AND ANY CONCERNS PRESENTED BY THE RESPONSES TO THE QUESTIONNAIRE ARE DISCLOSED TOTHE FULL COMMITTEE WITH THE INTERESTED PARTY RECUSED FROM DISCUSSING THE MATTER
Form 990, Part VII, Line B JOHN RYAN AND MARY BETH WALSH PROVIDE SERVICES TO A RELATED PARTY, THE WINIFREDMASTERSON BURKE REHABILITATION HOSPITAL, IN THEIR CAPACITY BOTH INDIVIDUALS WORKAPPROXIMATELY40 HOURS PER WEEK
Form 990, Part VI, Section B, Line COMPENSATION NARRATIVETHE COMPENSATION COMMITTEE IS APPOINTED, ESTABLISHED AND15 MAINTA
INED BY THE EXECUTIVE COMMITTEE TO OVERSEE POLICIES AND MAKE RECOMMENDATIONS WITHRESPECTTO EXECUTIVE COMPENSATION MEMBERS ARE MADE UP ENTIRELY OF INDEPENDENT DIRECTORSCOMMITTEE MEMBERS USE SALARY SURVEYS FROM INDEPENDENT ORGANIZATIONS SUCH AS HEALTHCAREFINANCIAL MANAGEMENT ASSOC, HFMA HEALTHCARE ASSOCIATION OF NEW YORK,HANYS, IN ADDITION TO IRSFORM 990 OF OTHER COMPARABLE INSTITUTIONS
Form 990, Part VI, Line 19 THE INSTITUTE MAKES ITS AUDITED FINANCIAL STATEMENTS, GOVERNING DOCUMENTS AND CONFLICTOFINTEREST POLICY AVAILABLE TO THE PUBLIC VIA WWW BURKEORG THE INSTITUTES 990 IS POSTEDATWWW GUIDESTAR ORG AND UPON REQUEST
Form 990, Part XI, Section A, Line AS PART OF AN ACTIVE AND ENGAGING BOARD,THE BOARD OF DIRECTORS AND SENIOR11 MANAGEMENT
ARE PROVIDED A COPY OF IRS FORM 990 IN EITHER ELECTRONIC OR PAPER FORMAT TO REVIEW ALL INDIVIDUALS ARE GIVEN ONE WEEK TO PROVIDE COMMENTS ON FORM 990 IF CHANGES AREREQUIRED, THEY ARE IMPLEMENTED INTO FORM 990 ONCE ALL COMMENTS ARE INCORPORATED, THE ACCOUNTINGDEPARTMENT ELECTRONICALLY FILES THE FORM 990 WITH THE APPROPRIATE FEDERAL AND STATEAGENCIES GRANT THORNTON, LLP PROVIDES A HIGH LEVEL REVIEW OF FORM 990 AS PART OF AN AGREED UPONPROCEDURE
l efile GRAPHIC p rint - DO NOT PROCESS
SCHEDULE R(Form 990)
Department of the Treasury
Internal Revenue Service
As Filed Data -
Related Organizations and Unrelated Partnerships
1- Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37.1- Attach to Form 990.
1- Information about Schedule R (Form 990) and its instructions is at www.irs.gov/form990 .
DLN:93493272006165
OMB No 1545-0047
201 4
Name of the organization Employer identification numberWinifred Masterson Burke Medical Res Ins Inc
13-3434924
Identification of Disregarded Entities Complete if the organization answered "Yes" on Form 990, Part IV, line 33.
(a)Name, address, and EIN (if applicable) of disregarded entity
(b)Primary activity
(c)Legal domicile (stateor foreign country)
(d)Total income
(e)End-of-year assets
(f)Direct controlling
entity
Identification of Related Tax-Exempt Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had oneor more related tax-exempt organizations during the tax year.
(a) (b) ( c) (d) (e) (f) (g)Name, address, and EIN of related organization Primary activity Legal domicile (state Exempt Code section Public charity status Direct controlling Section 512(b)
or foreign country) (if section 501(c)(3)) entity (13) controlledentity?
Yes No
(1) W M Burke Rehabilitation Hosp Hospital NY 501c3 3 NOT APPLICABLE No785 Mamaroneck Ave
White Plains, NY 1060513-1739937
(2) WM Burke Foundation Foundation NY 501 c3 11 NOT APPLICABLE No785 Mamaroneck Ave
White Plains, NY 1060513-3434928
For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 50135Y Schedule R (Form 990) 2014
Schedule R (Form 990) 2014 Page 2
Identification of Related Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 34because it had one or more related organizations treated as a partnership during the tax year.
(a) (b) (c) (d) (e) (f) (g) (h) (i) U) (k)Name, address, and EIN of Primary activity Legal Direct Predominant Share of Share of Disproprtionate Code V-UBI General or Percentage
related organization domicile controlling income(related, total income end-of-year allocations? amount in box managing ownership(state or entity unrelated, assets 20 of partner?foreign excluded from Schedule K-1country) tax under (Form 1065)
sections 512-514)
Yes No Yes No
Identification of Related Organizations Taxable as a Corporation or Trust Complete if the organization answered "Yes" on Form 990, Part IV,line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.
(a) (b) (c) (d) (e) (f) (g) (h) (i)Name, address, and EIN of Primary activity Legal Direct controlling Type of entity Share of total Share of end- Percentage Section 512
related organization domicile entity (C corp, S income of-year ownership (b)(13)(state or foreign corp, assets controlled
country) or trust) entity?
Yes No
Schedule R (Form 990) 2014
Schedule R (Form 990) 2014
ff^ Transactions With Related Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36.
Note . Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule
1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?
a Receipt of (i) interest, (ii) annuities, (iii) royalties, or (iv) rent from a controlled entity
b Gift, grant, or capital contribution to related organization(s)
c Gift, grant, or capital contribution from related organization(s)
d Loans or loan guarantees to or for related organization(s)
e Loans or loan guarantees by related organization(s)
f Dividends from related organization(s)
g Sale of assets to related organization(s)
h Purchase of assets from related organization(s)
i Exchange of assets with related organization(s)
j Lease of facilities, equipment, or other assets to related organization(s)
k Lease of facilities, equipment, or other assets from related organization(s)
I Performance of services or membership or fundraising solicitations for related organization(s)
m Performance of services or membership or fundraising solicitations by related organization(s)
n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s)
o Sharing of paid employees with related organization(s)
p Reimbursement paid to related organization(s) for expenses
q Reimbursement paid by related organization(s) for expenses
r Other transfer of cash or property to related organization(s)
s Other transfer of cash or property from related organization(s)
Page 3
YesFNo
No
No
Yes
No
No
if No
lg No
lh No
li No
li No
lk No-
ll No
lm No
In Yes
to Yes
I Ilp No
lq Yes
lr No
is Yes
2 If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds
(a)Name of related organization
(b)Transactiontype (a-s)
(c)Amount involved
(d)Method of determining amount involved
Schedule R (Form 990) 2014
Schedule R (Form 990) 2014 Page 4
Unrelated Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 37.Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or grossrevenue) that was not a related organization See instructions regarding exclusion for certain investment partnerships
(a) (b) (c) (d) (e) (f) (g) (h) (i) U) (k)Name, address, and EIN of entity Primary activity Legal Predominant Are all partners Share of Share of Disproprtionate Code V-UBI General or Percentage
domicile income section total end-of-year allocations? amount in managing ownership(state or (related, 501(c)(3) income assets box 20 part ner?foreign unrelated, organizations? of Schedulecountry) excluded from K-1
tax under (Form 1065)sections 512-
514)Yes No Yes No Yes No
Schedule R (Form 990) 2014
Schedule R (Form 990) 2014 Page 5
Supplemental Information
Provide additional information for responses to auestions on Schedule R (see instructions
Return Reference Explanation
Schedule R (Form 990) 2014
Consolidated Financial Statements,Supplementary Information, and
Report of Independent Certified Public Accountants
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIES
December 31, 2014 and 2013
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIES
TABLE OF CONTENTS
Page
Report of Independent Certified Public Accountants 1 -2
Consolidated Financial Statements
Consolidated Statements of Financial Position 3
Consolidated Statements of Operations 4
Consolidated Statements of Changes in Net Assets 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7-27
Supplementary Information
Net Patient Service Revenue 29
Other Revenue and Net Assets Released From Restrictions - Operations 30
Changes in Temporarily Restricted Net Assets - Specific Purpose Fund 31
Expenses 32 - 34
Refundable Advances and Grant Revenue 35 - 38
Consolidating Statements of Financial Position 39 - 42
Consolidating Statements of Operations 43 - 44
0 GrantThornton
Grant Thornton LLP
757 Third Avenue, 9th Floor
New York, NY 10017
T 212 599 0100
F 212 370 4520
Ganthornton corn
linkd in/GrantThorntonUStwitter com/GrantThornton US
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of DirectorsThe Winifred Masterson Burke Rehabilitation Hospital and Subsidiaries
We have audited the accompanying consolidated financial statements of The Winifred Masterson BurkeRehabilitation Hospital and Subsidiaries (the "Organization"), which comprise the consolidated statements offinancial position as of December 31, 2014 and 2013, and the related consolidated statements of operations, changesin net assets, and cash flows for the years then ended, and the related notes to the consolidated financial statements.
Management ' s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidatedfinancial statements that are free from material misstatement, whether due to fraud or error.
Auditor' s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. Weconducted our audits in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether theconsolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theconsolidated financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the Organization'spreparation and fair presentation of the consolidated financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theOrganization's internal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the consolidated financial statements.
Grant Thornton LLP
U S member firm of Grant Thornton International Ltd
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of The Winifred Masterson Burke Rehabilitation Hospital and Subsidiaries as of December 3 1,
2014 and 2013, and the results of its operations and its cash flows for the years then ended in accordance with
accounting principles generally accepted in the United States of America.
Supplementary Information
The accompanying information listed on the table of contents and presented on pages 29 through 44 is presentedfor purposes of additional analysis and is not a required part of the consolidated financial statements. Suchsupplementary information is the responsibility of management and was derived from and relates directly to theunderlying accounting and other records used to prepare the consolidated financial statements. The informationhas been subjected to the auditing procedures applied in the audits of the consolidated financial statements andcertain additional procedures. These additional procedures included comparing and reconciling the informationdirectly to the underlying accounting and other records used to prepare the consolidated financial statements or tothe consolidated financial statements themselves, and other additional procedures in accordance with auditingstandards generally accepted in the United States of America. In our opinion, the supplementary information isfairly stated, in all material respects, in relation to the consolidated financial statements as a whole.
New York, New York
May 19, 2015
-2-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESConsolidated Statements of Financial PositionAs of December 31, 2014 and 2013
ASSETS 2014 2013
CURRENT ASSETS
Cash and cash equivalents $ 18,471, 300 $ 17,528,815
Short-term investments 158,264 760,261
Assets whose use is limited required for current liabilities 808,678 764,775
Accounts receivable for services to patients - less allowance for uncollectible
accounts of $1,165,000 in 2014 and $1,163,000 in 2013 8,662,540 7,725,841
Estimated amounts due from third party payors-net - 2,746,835
Prepaid expenses 1,602,321 1,627,245
Inventory of supplies 543,542 509,062
Other receivables 3,778,917 2,823,747
Total current assets 34,025,562 34,486,581
Assets whose use is limited
Foundation funds 93,854,367 97,005,718
Trusteed funds 26,245,577 25,411,971
Self-insurance trust 2,612,707 2,544,780
Restricted use cash 212,678 217,775
Depreciation fund 31,776 31,776
Donor-restricted long-term investments 2,866,329 2,986,897
125,823,434 128,198,917
Less assets whose use is limited required for current liabilities (808,678 ) (764,775 )
125,014,756 127,434,142
Deferred financings costs, net 89,924 95,514
Interest rate cap 8,249 39,155
Property, plant and equipment, net 31,391,843 33,326,056
Total assets $ 190,530,334 $ 195,381,448
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable $ 2,113,507 $ 3,494,949
Accrued expenses 3,398,239 3,343,191
Current portion of long-term debt 597,718 583,382
Estimated self-insurance liabilities 596,000 547,000
Estimated amounts due to third-party payors - net 2,174,360 -
Refundable advances 2,169,915 1,851,692
Accrued retirement benefits 2,018,223 1,803,045
Total current liabilities 13,067,962 11,623,259
Long-term debt, net of current portion 5,832,000 6,429,717
Estimated self-insurance liabilities, net of current portion 2,522,640 2,569,456
Accrued retirement benefits 57,378,641 28,828,756
Total liabilities 78,801,243 49,451,188
NET ASSETS
Unrestricted 108,318,545 142,492,002
Temporarily restricted 2,622,961 2,650,673
Permanently restricted 787,585 787,585
Total net assets 111,729,091 145,9 30,260
Total liabilities and net assets $ 190,530,334 $ 195,381,448
The acconlpan17ng notes are an integral part of these consolida ted financial statements
-3-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESConsolidated Statements of OperationsFor the years ended December 31, 2014 and 2013
2014 2013
UNRESTRICTED NET ASSETS
REVENUES
Net patient service revenue $ 61,126,173 $ 63,332,678
Grant revenue 9,378,985 8 ,495,706
Other revenue 5,701,698 5,518,598
Medicare technology stimulus revenue 1,314,327 1,723,232
Net assets released from restrictions - operations 398,042 262,311
Total revenues 77,919,225 79,332,525
EXPENSES
Salaries and wages 47,608,424 45,923,663
Supplies and expenses 18,819,060 19,898,545
Employee benefits 14,050,613 16,547,397
Depreciation and amortization 5,351,832 5,288,659
Provision for bad debts 203,418 268,465
Interest 170,421 192,854
Total expenses 86,203,768 88,119,583
Loss from operations (8,284,543) (8,787,058)
NONOPERATING GAINS AND (LOSSES), NET
Contributions 623,132 838,170
Change in fair value of interest rate cap (30,906) 15,340
Unrestricted income on investments 1,824,559 2,469,820
Realized gains on investments - net 3,863,183 5,829,368
Change in unrealized gains and losses on trading securities (3,143,844 ) 10,731,259
Nonoperating income net 3,136,124 19,883,957
(Deficiency in) excess of revenue and gains over expenses and losses (5,148,419) 11,096,899
OTHER CHANGES IN UNRESTRICTED NET ASSETS
Net assets released from restrictions - capital acquisition 653,050 700,124
Other accrued retirement benefits adjustment (29,678,088 ) 17,456,731
(Decrease) increase in unrestricted net assets $ (34,173,457 ) $ 29,253,754
The acconlpan17ng notes are an integral part of these consolidated financial statements
-4-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESConsolidated Statements of Changes in Net AssetsFor the years ended December 31, 2014 and 2013
2014 2013
UNRESTRICTED NET ASSETS
(Deficiency in) excess of revenue and gains over expenses and losses
OTHER CHANGES IN UNRESTRICTED NET ASSETS
Net assets released from restrictions - capital acquisitions
Other accrued retirement benefits adjustment
(Decrease) increase in unrestricted net assets
TEMPORARILY RESTRICTED NET ASSETS
Restricted grants
Contributions
Investment return
Net assets released from restrictions - operations
Net assets released from restrictions - capital acquisitions
(Decrease) increase in temporarily restricted net assets
(Decrease) increase in net assets
Net assets, beginning of year
Net assets, end of year
$ (5,148,419) $ 11,096,899
653,050 700,124
(29,678,088 ) 17,456,731
(34,173,457 ) 29,253,754
545,274 550,989
356,770 588,057
121,336 440,892
(398,042) (262,311)
(653,050 ) (700,124 )
(27,712 ) 617,503
(34,201,169) 29,871,257
145,930,260 116,059,003
$ 111,729,091 $ 145,930,260
The acconlpan17ng notes are an integral part of these consolida ted financial statements
-5-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESConsolidated Statements of Cash FlowsFor the years ended December 31, 2014 and 2013
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES
(Decrease ) increase in net assets S (34,201,169) S 29,871,257
Adjustments to reconcile ( decrease ) increase in net assets to net cash
provided by ( used in ) operating activities
Depreciation and amortization 5,351,832 5,288,659
Provision for bad debts 203,418 268,465
Change in fair value of interest rate cap 30,906 (15,340)
Realized gains on investments - net (3,863,183) (5,829,368)
Change in unrealized gains and losses on trading securities 3,143,844 (10,731,259)
Restricted contributions and investment return (478,106) (1,028,949)
Other accrued retirement benefits adjustment 29 ,678,088 (17,456,731)
Changes in assets and liabilities
Accounts receivable for services to patients (1,140,117) 25,361
Prepaid expenses and other assets (964,726) (450,810)
Accounts payable (1,381,442) 6,970
Accrued expenses and other current liabilities 373,271 887,411
Self-insurance liabilities 2,184 248,537
Estimated third-party payor settlements, net 4,921,195 (5,562,685)
Accrued retirement benefits (913,025 ) 193,909
Net cash provided by (used in ) operating activities before
trading securities 762,970 (4,284,573)
Change in investments - trading securities 3,696,819 2,845,527
Net cash provided by (used in) operating activities 4,459,789 (1,439,046 )
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant, and equipment , net (3,412,029 ) (4,207,328 )
Net cash used in investing activities (3,412,029 ) (4,207,328 )
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt (583,381) (569,869)
Restricted contributions and investment retuni 478,106 1,028,949
Net cash (used in) provided by financing activities (105,275 ) 459,080
Net increase (decrease) in cash and cash equivalents 942,485 (5,187,294)
Cash and cash equivalents - beginning of year 17,528,815 22,716,109
Cash and cash equivalents - end of year S 18,471,300 $ 17,528,815
Supplemental disclosures of cash flow information
Interest paid $ 170,421 $ 192,854
The acconlpan17ng notes are an integral part of these consolida ted financial statements
-6-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated Financial StatementsDecember 31, 2014 and 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
The Winifred Masterson Burke Rehabilitation Hospital (the "Hospital") is located in White Plains,New York, and is a not-for-profit rehabilitation hospital. The Organization provides inpatient andoutpatient services.
The Hospital is the sole corporate member of The Winifred Masterson Burke Foundation, Inc.(the "Foundation") and The Winifred Masterson Burke Medical Research Institute, Inc. (the "Institute")(collectively, the "Organization").
The Foundation is a not-for-profit organization formed to hold and manage cash and investmentstransferred to it by the Hospital. The Institute is a not-for-profit organization that performs medicalresearch activities.
The Hospital, Foundation and Institute are recognized by the Internal Revenue Service as exempt from
income taxes under Section 501(c)(3) of the Internal Revenue Code ("IRC").
Basis of Accounting/Principles of Consolidation
The consolidated financial statements have been prepared on the accrual basis of accounting. Allintercompany transactions and balances have been eliminated in consolidation.
Statements of Operations
The Organization's operating income includes all unrestricted revenues and expenses. Non-operating gains
and losses include contributions, the change in fair value of the Organizations interest rate cap, unrestricted
income on investments, realized gains and losses, the change in unrealized gains and losses on trading
securities, which includes income related to investments in limited partnerships measured using a net asset
value ("NAV"). The consolidated statements of operations also include the caption "(deficiency in) excess
of revenue and gains over expenses and losses," which is the performance indicator. Other changes in
unrestricted net assets which are excluded from the performance indicator, consistent with industry practice,
include contributions of long-lived assets (including assets acquired using contributions which by donor
restriction were to be used for the purposes of acquiring such assets), and other accrued retirement benefits
adjustment.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the consolidated financial statements and the reported amounts of revenues and expenses during
the reporting period. Net patient service revenue, allowance for uncollectible patient accounts receivable,
amounts due to/from third-party payors, investments without readily determinable fair values, interest rate
cap, estimated self-insurance liabilities, and accrued retirement benefit liabilities represent significant
accounting estimates reflected in the consolidated financial statements. Actual results could differ from
those estimates. The Organization's net patient service revenue for the years ended December 31, 2014
and 2013, increased by $658,000 and decreased by $186,000, respectively, as a result of third-party payor
settlements recognized from prior years.
-7-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Cash and Cash Equivalents
Cash in banks and all highly liquid investments with original maturities of three months or less at the dateof purchase are considered cash and cash equivalents, except for amounts included in assets whose use islimited. The carrying amount approximates fair value. The Organization's cash and cash equivalents areheld in accounts whose balances substantially exceed the amount of related federal insurance.
Short-term Investments
Investments with original maturities of three months or greater at the date of purchase are considered short-term investments, except for amounts included in assets whose use is limited. The carrying amountapproximates fair value.
Assets Whose Use is Limited
Assets whose use is limited include trusteed funds for which the Board of Directors of the Organization isempowered to use for patient care and other related purposes, within certain guidelines. Also included areFoundation investments, donor-restricted long-term investments, self-insurance trust investments, assetswhose use is limited under an indenture agreement (foundation fund), a restricted cash fund and amountsset aside for plant replacement purposes (depreciation fund). Assets whose use is limited classified ascurrent are for the current portion of estimated self-insurance liabilities and restricted cash.
Investments - Classified as Assets Whose Use is Limited
Investments with readily determinable fair values are stated at fair value based upon quoted market prices.The Organization invests in a variety of alternative investments carried at their net asset value per shareas a practical expedient, as provided by the investment managers. Alternative investments are primarily
in private equity funds and privately traded mutual funds, in which the underlying investments are in
marketable securities and commodities. Because alternative investments are not readily marketable, their
estimated value is subject to uncertainty and therefore may differ from the value that would have been
used had a ready market for such investments existed. These instruments may contain elements of both
credit risk and market risk. Such risks included, but are not limited to: limited liquidity, absence oversight,
dependence on key individuals, emphasis on speculative investments, and nondisclosure of portfolio
composition.
Unrestricted investment income includes dividend and interest income, realized gains and losses andunrealized gains and losses on its trading securities and is included in non-operating gains and losses, net.
The Organization also invests in various limited partnerships. These investments utilize a "fund-of-funds"
approach resulting in diversified multi-strategy, multimanager investments. The partnerships invest
capital in a diversified group of investment entities, primarily in limited partnership interests issued by
nontraditional firms or "hedge funds," which engage in a variety of investment strategies managed by
money managers. These investments are measured using a NAV per share, or its equivalent.
Management's estimates are based on information provided by the fund managers or the general partners.
-8-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Inventory of Supplies
Inventory of supplies are valued at the lower of cost (average-costing method approximates FIFO) or
market.
Deferred Financing Costs
Deferred financing costs represent costs associated with the existing debt, and are being amortized over theterm of the related debt.
Interest Rate Cap
The Organization recognizes all derivative financial instruments (interest rate cap) in the consolidatedfinancial statements at fair value. Management has determined that the Organization's interest rate capagreement does not qualify as a hedge for financial reporting purposes. Consequently, the change in thefair value of the Organization's interest rate cap agreement is included as a component of (deficiency in)excess of revenue and gains over expenses and losses in the consolidated statement of operations.
The interest rate cap agreement is used by the Organization to manage exposure to an increase in interest
rates. Derivative financial instruments involve, to a varying degree, elements of market and credit risk.
The market risk associated with this instrument resulting from interest increases is expected to offset the
market risk of the liability being hedged.
Property, Plant and Equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and amortization.Cost for donated assets is the fair value at the date of the gift. Equipment under lease is depreciatedin accordance with the Organization's standard depreciation policy or term of the lease, whichever isshorter. Depreciation and amortization are provided for using the straight-line method, using the followingestimated useful lives established by management:
Land improvements
Buildings
Fixed equipment
Major movable equipment
5 - 25 years
15 - 40 years
5 - 20 years
2 - 20 years
Gifts of land, buildings, and equipment are reported as unrestricted support unless explicit donorstipulations specify how the donated assets must be used. Gifts of long-lived assets with explicitrestrictions that specify how the assets are to be used and gifts of cash or other assets that must be used toacquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about howlong those long-lived assets must be maintained, the Organization reports expirations of donor restrictionswhen the donated or acquired long-lived assets are placed in service.
The Organization, using its best estimates based on reasonable and supportable assumptions andprojections, reviews for impairment of long-lived assets to be held and used whenever events orchanges in circumstances indicate that the carrying amount of its assets might not be recoverable.
-9-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Estimated Self-Insurance Liabilities
The provision for estimated self-insurance liabilities includes estimates of the ultimate costs for bothreported claims and claims incurred but not reported.
Unrestricted, Temporarily Restricted and Permanently Restricted Net Assets
Unrestricted net assets are not subject to donor-imposed stipulations and, therefore, may be expended for
any purpose in performing the primary objectives of the Organization. Temporarily restricted net assets are
those whose use has been limited by donors to a specific time period or purpose. Temporarily restricted net
assets are available for education, purchase of equipment, research, financial assistance and other items.
Permanently restricted net assets have been restricted by donors to be maintained by the Organization in
perpetuity or used at a Board appropriated spending rate for an agreed upon purpose, as specified by the
donor. Investment earnings on such are recognized as temporarily restricted revenue until such earnings are
appropriated for expenditure in accordance with the Organizations policies and procedures.
Net Patient Service Revenue
Net patient service revenue is reported at the estimated net realizable amounts from patients, third-partypayors, and others for services rendered, including estimated retroactive adjustments under reimbursementagreements with third-party payors. Retroactive adjustments are accrued on an estimated basis in the periodthe related services are rendered and adjusted in future periods as additional information becomes availableor final settlements are determined.
Medicare Technology Stimulus Revenue
The American Recovery and Reinvestment Act of 2009 provides for Medicare incentive payments for
eligible hospitals and professionals that implement and achieve meaningful use of certified electronic
health record ("EHR") technology. For these EHR incentive payments, the Organization utilizes a grant
accounting model to recognize these revenues. Under this accounting policy, EHR incentive payments
were recognized as revenues when attestation that the EHR meaningful use criteria for the required period
of time was demonstrated. Accordingly, the Organization recognized $1,314,327 and $1,723,232 of EHR
revenues in the accompanying consolidated statement of operations for the year ended December 31, 2014
and 2013, respectively. The Organization's attestation of compliance with the meaningful use criteria
is subject to audit by the government or its designee. Additionally, Medicare EHR incentive payments
received are subject to retrospective adjustment upon final settlement of the applicable cost report from
which payments were calculated.
Charity Care and Community Benefit
The Organization provides charity care to patients who meet certain financial criteria under the
Organizations charity care policy and criteria established by the State of New York. The Organization
provides care to patients who meet the criteria without charge or at amounts less than established rates.
Because the Organization does not pursue collection of amounts determined to qualify as charity care, they
are not reported as revenue. Charity care is estimated based on average cost per day. The estimated costs
incurred to provide charity care under the Organization's policy during the years ended December 31, 2014
and 2013, was approximately $1 16,569 and $405,349, respectively.
-10-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
As a community-based service organization, certain programs are provided, such as the Think First
Program, a free injury educational seminar targeted to children. In addition, the Organization provides
free and discounted meeting room space and use of the Organization's campus to not-for-profit health
organizations. The Organization also provides free support groups and enrollment assistance in public
programs. Annually, the Organization sponsors the Burke Wheelchair Games, a sporting event that targets
both children and adults with disabilities. During this event, the Organization offers free admission for
economically disadvantaged participants.
Donor-restricted Gifts and Grants
Gifts of cash and other assets are reported as restricted support if they are received with donor stipulationsthat limit use of the donated assets. Grants restricted by grantors for particular operating purposes or forproperty, plant and equipment acquisitions are deemed to be earned and reported as temporarily restrictedgrant revenues when the expenditures have been incurred in compliance with the specific restrictions.When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction isaccomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reportedin the consolidated statements of operations as net assets released from restrictions. Donor-restrictedcontributions whose restrictions are met within the same year as received are reflected as unrestrictedcontributions in the accompanying consolidated financial statements.
Allowance for Uncollectible Accounts
The Organization provides an allowance for uncollectible accounts for estimated losses resulting from theunwillingness or inability of patients or third-party payors to make payment for services. The allowance isdetermined by analyzing specific accounts and historical data and trends. Patient accounts receivable arecharged off against the allowance for uncollectible accounts when management determines that recovery isunlikely and the Organization ceases collection efforts.
Fair Value Measurements
The Organization measures fair value as the price that would be received to sell an asset or paid to transfer aliability (the exit price) in an orderly transaction between market participants at the measurement date. Theaccounting guidance outlines a valuation framework and creates a fair value hierarchy in order to increasethe consistency and comparability of fair value measurements and the related disclosures. The fair valuehierarchy is broken down into three levels based on the source of inputs as follows:
Level 1 - Quoted prices are available in publicly traded markets for identical assets or liabilities as ofthe measurement date.
Level 2 - Pricing inputs, including broker quotes, are generally those other than exchange quotedprices in publicly traded markets, which are either directly or indirectly observable as of themeasurement date, and fair value is determined through the use of valuation methodologies.Also included in Level 2 are investments measured using a NAV per share, or its equivalent,that may be redeemed at that NAV at the date of the statement of financial position or in thenear term, which the Organization has generally considered to be within 90 days.
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Level 3 - Pricing inputs are unobservable for the asset or liability and include situations where there islittle, if any, market activity for the asset or liability. The inputs into the determination of fairvalue require significant management judgment or estimation. Investments that are includedin this category generally include hedge funds, private investment funds and partnershipinterests, which are required to provide the Organization with periodic audited financialstatements. Also included in Level 3 are investments measured using NAV per share, or itsequivalent, that can never be redeemed at NAV or for which redemption at NAV is uncertaindue to lockup periods or other investment restrictions.
Due to/from Broker
Due to/from broker includes net amounts receivable for securities transactions that have not settled and cashheld at the broker at the date of the consolidated financial statements.
Reclassifications
Certain amounts in the 2013 consolidated financial statements have been reclassified to conform with thecurrent year presentation. Such reclassification did not change total assets, liabilities, revenues or expensesor changes in net assets reflected on the 2013 consolidated financial statements.
Recent Accounting Pronouncements
In May 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update
(ASU) 2014-09, Revenue from Contracts with Customers, to clarify the principles for recognizing revenue
and to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and
International Financial Reporting Standards. The core principle of the new guidance is that an entity should
recognize revenue to depict the transfer of promised goods or services to customers in an amount that
reflects the consideration to which the entity expects to be entitled in exchange for these goods and services.
ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including
interim periods within that reporting period. Early application is not permitted. An entity will apply the
amendments in this update using either a full retrospective application, which applies the standard to each
prior period presented, on under the modified retrospective application, an entity recognizes the cumulative
effect of initially applying the new standard as an adjustment to the opening balance sheet of retained
earnings at the date of initial application. Revenue in periods presented before that date will continue to be
reported under guidance in effect before the change. Currently, the American Institute of Certified Public
Accountants Healthcare Revenue Recognition Task Force is interpreting ASU 2014-09 and its effects on
the health care industry.
-12-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
2. NET PATIENT SERVICE REVENUE
The Organization has agreements with third-party payors that provide for payments to the Organization at
amounts different from its established rates. A summary of the payment arrangements with major third-
party payors is as follows:
Medicare - The Organization is a 150-bed acute care facility having 120 beds designated for inpatient
rehabilitation facility ("IRF") use. The remaining 30 beds are for acute care use. The 120 IRF beds are
reimbursed under the Medicare Case Mix Grouping ("CMG") payment system. In order to qualify for
CMG reimbursement, at least 60% of all patients admitted to the facility must have certain clinical
characteristics that qualify them for rehabilitation treatment. As determined by CMS, the Organization's
IRF patient population was in compliance with this regulation for 2014 and 2013.
Medicaid - Inpatient and outpatient services rendered to Medicaid program beneficiaries are reimbursedon a per diem basis. The per diem rates contain prospective adjustments for the current year to accountfor changes in costs and volume.
Other - Payment agreements have been entered into with certain commercial insurance carriers, healthmaintenance organizations, and preferred provider organizations. The basis for payment to theOrganization under these agreements includes prospectively determined rates per discharge, discountsfrom established charges, and prospectively determined dailies.
Laws and regulations governing health care programs are complex and subject to interpretation. As a
result, there is at least a reasonable possibility that recorded estimates will change by a material amount in
the near term. Noncompliance with such laws and regulations could result in fines, penalties, and exclusion
from such programs. The federal government and many states have aggressively increased enforcement
under Medicare and Medicaid antifraud and abuse legislation. Recent federal initiatives have prompted a
national review of federally funded health care programs. The Organization has a compliance program to
monitor conformance with applicable laws and regulations, but the possibility of future government review
and interpretation exists. The Organization believes that it is in compliance, in all material respects, with all
applicable laws and regulations and, is not aware of any pending or threatened investigations involving
allegations of potential wrongdoing. While no such regulatory inquiries have been made, compliance with
such laws and regulations can be subject to future government review and interpretation. Noncompliance
with such laws and regulations could result in repayments of amounts improperly reimbursed, substantial
monetary fines, civil and criminal penalties and exclusion from the Medicare and Medicaid programs.
- 13 -
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
3. ASSETS WHOSE USE IS LIMITED
At December 31, 2014 and 2013, assets whose use is limited consist of the following:
December 31,
2014 2013
Foundation funds:
Equity securities $ 52,786,567 $ 55,219,805
Fixed income - 1,046,890
Common trust funds/mutual funds 9,677,204 13,125,374
Limited partnerships 27,072,993 27,607,668
Due from broker 4,317,603 5,981
93,854,367 97,005,718
Trusteed funds:
Cash and cash equivalents 175,622 833,849
Equity securities 16,592,014 15,733,583
Fixed income - 1,331,550
Common trust funds/mutual funds 2,565,911 3,086,893
Limited partnerships 5,683,932 4,441,605
Due from (to) broker 1,228,098 (15,509 )
26,245,577 25,411,971
Self-insurance trust:
Cash and cash equivalents 99,114 208,838
Fixed income 2,513,593 2,335,942
2,612,707 2,544,780
Restricted use - cash 212,678 217,775
Depreciation fund - cash and cash equivalents 31,776 31,776
-14-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Donor-restricted long term investments:
Home Health Education Fund:
Cash and cash equivalents
Equity securities
Due to broker
Kennedy Duncan Fund:
Cash and cash equivalents
Equity securities
Due from (to) broker
Employee recognition fund - cash equivalents
Restricted - cash
Total donor-restricted long-term investments
Total assets whose use is limited
December 31,
2014 2013
$ 7,513 $ 9,937
282,200 269,447
(1,791 ) (2,872 )
287,922 276,512
91,734 83,878
1,868,065 1,751,192
689 (4,833 )
1,960,488 1,830,237
104,592 104,506
513,327 775,642
2,866,329 2,986,897
$ 125,823,434 $ 128,198,917
4. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
The fair value framework requires the categorization of assets and liabilities into three levels based upon the
assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of
fair value, whereas Level 3 generally requires significant management judgment. The Organization used
the market approach as its valuation technique.
The following table summarizes the Organization's financial instruments by levels and excludes amountsdue (to) from broker disclosed in footnote 3:
December 31, 2014 Level 1 Level 2 Level 3 Total
Cash and cash equivalents S 19,707,656 S - S - 5 19,707,656
Fixed income securities ( bond funds
and CD's) 2,671,857 - - 2,671,857
Equity oriented funds 39,272,671 20,685,815 11,570,360 71,528,846
Limited partnerships - 20,187,300 12,569,625 32,756,925
Common trust funds/mutual funds - 12,243,115 - 12,243,115
61,652,184 53,116,230 24,139,985 138,908,399
Interest rate cap - 8,249 - 8,249
Total assets 5 61,652,184 5 53,124,479 5 24,139,985 5 138,916,648
- 15 -
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
December 31, 2013 Level 1 Level 2 Level 3 Total
Cash and cash equivalents $ 19,795,016 $ - $ - $ 19,795,016
Fixed income securities (bond funds
and CD's ) 5,474,643 - - 5,474,643
Equity oriented funds 43,937,887 11,843,485 17,192,655 72,974,027
Limited partnerslups - 18,475,326 13,573,947 32,049,273
Common trust funds /mutual fluids - 16,212,267 - 16,212,267
Interest rate cap - 39,155 - 39,155
Total assets $ 69,207,546 $ 46,570,233 $ 30,766,602 $ 146,544,381
For the years ended December 31, 2014 and 2013, purchases and sales of Level 3 investments were
transfers between Level 1 and Level 3 investments . At December 31, 2013 , the Organization transferred
$10,102 from Level 3 to Level 2 due to the termination of a fund subsequent December 31, 2013. The
following tables summarize changes in fair values associated with Level 3 investments for the years ended
December 31, 2014 and 2013:
Net
Realized and
Balance at Unrealized Purchases Sales Transfers Balance at
Leiel3Iniestments December 31 , 21113 Gains (Losses) (Contributions) (Withdrawals) ( Net) December 31, 21114
Equity - oriented funds $ 17,192,655 $ (823,845) $ 2,038,268 $ (6,836,718) $ - $ 11,570,360
Limited paitneiships 13,577,947 ( 1,662,3 " ) 1,574,208 (916,208 ) - 12,569,615
Total S 30,766,602 $ (2,486,167 ) $ 7,612,476 $ (7,75? 926 ) $ - $ 24,139.98
Net
Realized and
Balance at Unrealized Purchases Sales Transfers Balance at
Le%el3 In%estments December 31, 2012 Gains (Losses) (Contributions) ( \Vithdraeals) (Net) December 31, 2013
Equity - of iented t mds $ 14 193 224 $ 1 728 405 $ 1529 980 $ (2_58 95.1) $ - $ 17 192 655
Limited p;utneiships 10 792 754 2 526 902 1 681 181 (1416 788 ) (10 102 ) 13 571 947
Total $ 24985 978 $ 4 255 307 $ 3 211 161 $ (I 675 742) $ (10 102) $ 30 766 602
The Organization uses the NAV per share or its equivalent to determine fair value of all underlyinginvestments which: (a) do not have readily determinable fair value and (b) prepare their financialstatements consistent with the measurement principle of an investment company or have the attributes of aninvestment company.
-16-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
The following table lists investments by major category, in addition to the Organization's outstanding
capital commitments, which are due on demand, related to their investment in limited partnerships and
equity oriented funds are as follows at December 31, 2014 and 2013:
December 31,December 31, December 31, 2014
2014 2013 UnfundedCategory Fair Value Fair Value Commitments
Equity oriented funds S 32 256 175 S 29 036 140 $ 95 657
C onion trust lunds'mutual
funds'n) 12 243 115 16 212 267 -
Limited partnerships "' 32 756 925
RedemptionFrequenc3
Monthly-Annually
Monthly-
Quarterly
Monthly or at
32 049 273 1 390808 termination of fund
5 77 256 215 5 77 297 680 5 1 486 465
RedemptionNotice Lockup Period/Period Remaining Life
30 - 60 days 180 days
15 - 95 days NA
Ranges between 10 -
15 days and no
redemption I - 5 Years
a) Equit,y oriented funds: Investments are made up of equity investments in various limited liabilitycompanies and open end investment companies, some of which act as feeder funds.
"" Coninion trust funds/nurtual funds: Investments are made up of various private investment funds,
common trust funds, credit asset trust, corporate bond trust and investors trust.
'°' Limited partnerships: Investments in limited partnerships.
The Organization ' s investment portfolio is exposed to various risks , such as interest rate, market risk and
credit risk. Because of the level of risk associated with such investments , changes in their values will occur
and such changes could materially affect the amounts reported in the accompanying consolidated financial
statements. The Organization values Level 3 investments based on the NAV, or its equivalent , reported
within audited financial statements provided by the fund managers , when available. The reported fair value
of Level 3 investments is sensitive to changes in the funds underlying NAV or its equivalent.
5. PERMANENTLY RESTRICTED NET ASSETS
Permanently restricted net assets consisted of the following at December 31, 2014 and 2013:
2014
Kennedy Duncan Fund
Home Health Education Fund
Employee Recognition Fund
Total
$ 387,585
2013
$ 387,585
300,000 300,000
100,000 100,000
$ 787,585 $ 787,585
Earnings on permanently restricted net assets are to be used in support of operations or specified program
initiatives as stipulated by the respective donor.
Endotirments - The endowment is composed of three permanently restricted endowments as ofDecember 31, 2014 and 2013. Net assets associated with endowment funds, including funds designated by
-17-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
the Board of Directors to function as endowments, if any, are classified and reported based on the existenceor absence of donor-imposed restrictions.
Interpretations ofRelevant Lair - The Organization follows the New York Prudent Management of
Institutional Funds Act ("NYPMIFA"),which requires the preservation of the fair value of the original
gift, as of the gift date of the donor-restricted endowment funds, absent explicit donor stipulations to the
contrary. As a result of this interpretation, the Organization classifies as permanently restricted net assets:
(a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent
gifts to the permanent endowment, and (c) the accumulations to the permanent endowment made in
accordance with the directions of the applicable donor gift instrument, at the time the accumulation is added
to the fund.
The remaining portion of the donor-restricted endowment fund that is not classified in permanently
restricted net assets is classified as temporarily restricted nets assets until those amounts are appropriated
for expenditure by the Organization ' s Board of Directors in a manner consistent with the standard of
prudence prescribed by NYPMIFA.
In accordance with NYPMIFA, the Organization considers the following factors in making a determination
to appropriate or accumulate donor-restricted endowment funds: the purpose, duration, and preservation of
the endowment fund; expected total return of investments; general economic conditions and the possible
effect of inflation or deflation; other resources of the institution; and the investment policy of the institution.
Changes in endowment funds and net assets for the years ended December 31, 2014 and 2013 consist of the
following:
Temporarily Permanently
Restricted Restricted Total
Endowment funds and net assets, December 31, 2012
Investment returns
Investment loss
Net appreciation
Total investment return
Appropriation of endowment investment return for
expenditure
Endowment funds and net assets, December 31, 2013
Investment returns
Investment loss
Net appreciation
Total investment return
Appropriation of endowment investment return for
expenditure
Endowment funds and net assets, December 31, 2014
$ 1,293,881 $ 787,585 $ 2,081,466
(13,115) - (13,115)
453,580 - 453,580
440,465 - 440,465
(400 ) - (400 )
1,733,946 787,585 2,521,531
(13,980) - (13,980)
135,072 - 135,072
121,092 - 121,092
(350 ) - (350 )
$ 1,854,688 $ 787,585 $ 2,642,273
- 18 -
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Return Objectives and Risk Parameters - The Organization's primary investment objectives are to invest its
endowment principal to achieve growth of both principal value and income over time sufficient to preserve
and/or increase the real (inflation adjusted) purchasing power of the assets, and to provide a stable source of
perpetual financial support.
Strategies Emploi•ed for Achieving Objectives - The Organization relies on a total return strategy in which
active equity managers/funds are expected to achieve an annualized total rate of return over a three-to five-
year period, which exceeds an agreed upon benchmark rate of return, net of costs and fees. Total return is
defined as dividend and interest income plus realized and unrealized capital appreciation or depreciation.
Active fixed income managers are expected to exceed appropriate market indices, net of costs and fees.
When index funds are used, the return should closely track the appropriate index.
Funds tii ith Deficiencies - From time to time, the fair value of assets associated with individual donor-
restricted endowment funds may fall below the level that the donor or NYPMIFA requires the Organization
to retain as a fund of permanent duration. At December 31, 2014 and 2013, there were no aggregate
deficiencies of this nature reported within restricted net assets.
6. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at December 31, 2014 and 2013, is as follows:
2014
Land
Land improvements
Buildings
Fixed equipment
Major movable equipment
Less accumulated depreciation and amortization
Construction in progress
$ 176,475
6,283,451
59,181,193
28,241,972
42,748,198
136,631,289
2013
$ 176,475
6,185,902
57,771,553
28,102,348
41,308,492
133,544,770
(105,596,547 ) (100,338,587 )
31,034,742
357,101
$ 31,391,843
33,206,183
119,873
$ 33,326,056
Depreciation and amortization expense on property , plant and equipment was $5,340,652 and $5,283,069 at
December 31, 2014 and 2013, respectively.
At December 31, 2014 and 2013, included in property, plant and equipment is equipment recorded under a
capital lease arrangement with an original cost of $2,882,000. Accumulated amortization on the leased
equipment was approximately $1,030,418 and $881,356 at December 31, 2014 and 2013, respectively.
-19-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
7. LONG-TERM DEBT
Long-term debt as of December 31 consisted of:
2014
Term loan
Capital lease collateralized by related equipment for
cogeneration plant with the Dormitory Authority of
New York State Tax Exempt Leasing Program (TELP), with
an interest rate of 5.94% and monthly payments through
March 2018
Less current portion
$ 5,559,372
870,346
6,429,718
2013
$ 5,906,832
1,106,267
7,013,099
(597,718 ) (583,382 )
$ 5,832,000 $ 6,429,717
The Organization has a term loan with a financial institution which was used for renovations to the
Institute's "Sturgis" building. The total amount of the term loan was $6,949,216 and has monthly
principal payments that began in January 2011 of $28,988, with a balloon payment due January 1, 2018
of $4,515,408. The term loan has a variable interest rate based on monthly LIBOR plus 1.75% (1.90%
and 1.92% at December 31, 2014 and 2013, respectively). The term loan is collateralized by certain
investments held by the Organization at 110% of the outstanding amount. The term loan has certain
financial covenants which are required to be maintained on a quarterly basis.
Additionally, the Organization has an interest rate cap agreement with a financial institution, to limit
the impact of increases in the interest rate on their term loan. The notional amount was $6,400,000 and
$6,800,000 at December 31, 2014 and 2013, respectively. This agreement limits the Organization's
exposure to increasing interest rates by providing a cap at 3.75% per annum.
The interest rate cap agreement matures at the time the term loan matures. The fair value of the interest
rate cap agreement on December 31, 2014 and 2013 was estimated to be $8,248 and $39,155, respectively,
and is separately shown as a non-current asset in the consolidated statement of financial position.
The Organization may be exposed to credit loss in the event of nonperformance by the counterparty
(JP Morgan) to the interest rate cap agreement. However, the Organization does not anticipate
nonperformance as its counterparty is rated Aa 1 by Moody's.
-20-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Future minimum payments on the long-term debt as of December 31, 2014 , are as follows:
Capital Lease
Years Term Loan Obligation
2015 347,461 296,469
2016 347,461 296,469
2017 347,461 296,469
2018 4,516,989 74,117
Total 5,559,372 963,524
Less amount representing interest on capital
lease obligation - (93,178 )
5,559,372 870,346
8. SELF-INSURANCE LIABILITIES
In June 2005, the Organization established a professional and general liability self-insurance program on
a claims-made basis for limits of $1,000,000 per claim and $3,000,000 in the annual aggregate. The
Organization also purchases commercial excess insurance coverage above these limits of coverage.
This program is maintained and funded through the means of a self-insurance trust, managed by an
independent fiduciary, and set up for the purpose of the payment of applicable claims from this program.
An independent actuary calculates liabilities in the trust. The estimated liability for this reserve is
approximately $1,938,000 and $1,878,000 at December 31, 2014 and 2013, respectively. Reserves
for outstanding liabilities relating to incidents occurring during the self-insurance program and under
insurance policies in force prior to June 2005, of approximately $14,000 and $19,000, were calculated as
of December 31, 2014 and 2013, respectively, at an expected confidence level of loss and discounted basis.
The Organization also maintains an accrual, calculated at an expected confidence level of loss and
discounted basis, of approximately $1,166,000 and $1,219,000, for the period coverage as of December 3 1,
2014 and 2013, respectively. The Organization has accrued its best estimate of the ultimate cost of losses
payable under its self-insurance program at estimated present value based on a discount rate of 3.15% and
3.58% at December 31, 2014 and 2013, respectively.
9. ACCRUED RETIREMENT BENEFITS
The Organization has a noncontributory defined benefit pension plan (the "Plan") covering substantially allits employees. The benefits are based on years of service and the employees' compensation during the lastfive years of covered employment. Contributions are intended to provide not only for benefits attributedto service to date, but also for those expected to be earned in the future. At December 31, 2014, themortality table used for projecting the benefit obligation was changed to the RP-2014 Mortality tablewith Scale MP-2014. The Organization also sponsors a supplemental retirement plan for certain executives.
The Organization's funding policy is to contribute annually an amount no less than the minimum amount
required by ERISA.
-21 -
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
In addition to the Organization's defined benefit pension plan, the Organization provides postretirementmedical and life insurance benefits ("OPEB"). To be eligible for the medical benefits, the employee mustbe at least 65 years old and a participant in the defined benefit pension plan. To be eligible for the lifeinsurance benefits, the employee must be at least 55 years old and vested in the defined benefit pensionplan. The Organization funds these benefit costs on a pay-as-you-go basis.
The following table sets forth the plans, funded status, and amounts recognized in the Organization'sconsolidated financial statements:
Obligations and fimded status
Organization's contributions
Benefit payments
Unfimded status - end of year - amount
recognized in the consolidated
statements of financial position
Benefit obligation and fair value of plan
assets are as follows
Projected benefit obligation
Accumulated benefit obligation
Fair value of plan assets
Other accrued retirement benefits
adjustment
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Recognized actuarial loss (gain)
Defined Benefit Plans Other Posh•etirement Benefits
2014 2013 2014 2013
$ 2,750,117 $ 3,950,476 $ 119,866 $ 116,552
(53,690,154) (26,520,664) (5,706,710) (4,111,137 )
(121,959,760 ) (93,436,060 ) (5,706,710 ) (4,111,137 )
(120,976 ,365 ) (93,133,373 )
68,269,606 66,915,396
28,051,237
$ 1,737,471
4,555,896
(5,331,704)
(520,999)
(15,865,045)
$ 2,056,637
4,149,293
(4,712,103)
(520,999)
1,626,851
$ 144,984
210,332
(150,824)
(1,591,686 )
$ 197,221
211,768
(94,265)
Net periodic benefit cost $ 1,868,370 $ 4,031,444 $ 88,588 $ 229,494
At December 31, 2014, the expected estimated aggregate amount from unrestricted net assets into net
periodic benefit cost related to net actuarial loss and prior service cost is S3,911,304 and $671,823,
respectively.
-22-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Weighted-average assumptions used in determining the benefit obligation at December 31, 2014 and 2013,
were as follows:
Assumptions
Weighted-average assumptions used in computing
benefit obligation at December 31
Discount rate
Rate of compensation increase
Initial health care cost trend rate
Ultimate trend rate in 2014 and forward
Weighted-average assumptions used in computing
net periodic benefit cost for the years ended
December 31
Discount rate
Expected long-tern return on assets
Rate of compensation increase
Initial health care cost trend rate
Ultimate trend rate in 2013 and forward
Other Postretirement
Defined Benefit Plans Benefits
2014 2013 2014 2013
399% 509% 389% 510%
2 50 2 50 - -
- - 3 00 3 00
300 300
5 09 4 29 5 10 4 44
8 00 8 00 - -
2 50 2 50 - -
- - 3 00 4 74
300 300
To develop the expected long-term rate of return on plan assets, the Organization considered the historical
returns and the future expectations for returns for each asset class, as well as the target asset allocation of
the pension portfolio. This approach resulted in the selection of the 8.00% long-term rate of return on plan
assets assumption.
The measurement date used to determine the Plan measurements is December 3 1.
The Plan's weighted-average asset allocation at December 31, 2014 and 2013 is as follows:
2014
Equity securities
Common trusts funds/mutual funds
Cash and cash equivalents
Limited partnerships
46%
27
2
25
100 %
2013
41 %
39
5
15
100 %
-23-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Fair Values of Plan Assets
The following table presents the Organization's categorization of the assets of the Plan within the fair valuehierarchy using the market approach valuation technique at December 31, 2014 and 2013:
December 31, 2014 Level 1 Level 2 Level 3 Total
Cash and cash equivalents $ 1,159,482 $ - $ - $ 1,159,482
Equity securitieso) 12,651,258 18,738,109 - 31,389,367
Common trust funds/mutual funds 't" 11,840,516 6,790,811 - 18,631,327
Limited Partnership - 17,089,430 - 17,089,430
$ 25,651,256 $ 42,618,350 $ - $ 68,269,606
December 31, 2013
Cash and cash equivalents
Equity securitieso)
Common trust funds/mutual funds
Limited Partnership (')
Level1 Level 2 Level 3 Total
$ 3,699,563 $ - $ - $ 3,699,563
23,115,850 4,097,345 - 27,213,195
22,437,778 3,388,537 - 25,826,315
- 10,176,323 - 10,176,323
$ 49,253,191 $ 17,662,205 $ - $ 66,915,396
WComprised of -various equity securities which include private equity securities. U S and foreign large. mid-cap and small-cap
equities
(h) Comprised of debt securities in publicly and privately held mutual funds
'°' Comprised of investments in limited partnership
The Plan had unfunded capital commitments of $56,512 at December 31, 2014.
Target Allocations
The Plan's targeted asset allocation is as follows:
Min % Target % Max %
Asset Class
Growth assets , US Equity, International Equity,
Hedge Funds, Private Equity
Fixed Income
Real Assets Commodities, Real Estate, MLP's
Cash
50% 70% 80%
- 10 20
10 20 30
- - 10
-24-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Contributions
The Organization's required contributions to the defined benefit plans and the postretirement plan in 2015
are approximately $3,500,000 and $145,000, respectively. These contributions represent the amount
necessary to meet expected benefit payments for those individuals who are expected to terminate or retire
during 2014 and who become eligible for a benefit.
Estimated Future Benefit Payments
Future benefit payments by the Plan and OPEB, reflective of expected future service, are expected to bepaid as follows:
Fiscal Years Ending December 31,
2015
2016
2017
2018
2019
2020 - 2024
Plan OPEB
$ 6,594,847 $ 144,893
4,903,373 158,671
5,111,566 168,432
5,391,567 177,647
5,722,010 191,480
32,438,370 1,190,213
Defined Contribution Plan - The Institute has a defined contribution benefit plan covering substantially allof its employees. Benefits are provided by fixed-dollar annuities issued to each participant. Contributionsare made automatically based on a percentage of the participant's regular salary in accordance with thefollowing schedule:
On Portion of On Salary Above
Salary within Social Social SecuritySecurity Wage Base Wage Base
Under age 40 5 10
Age 40-49 10 15
Age 50 and above 15 20
The Organization's benefit expense for the defined contribution plan for the years ended December 3 1,2014 and 2013, was approximately $259,627 and $421,943, respectively.
10. CONCENTRATION OF CREDIT RISK
The Organization provides health care services through its inpatient and outpatient care facilities. TheOrganization grants credit without collateral to patients, substantially all of who are local residents;however, it routinely obtains assignment of (or is otherwise entitled to receive) patients' benefits payableunder their health insurance programs, plans, or policies (e.g., Medicare, Medicaid, Blue Cross, healthmaintenance organizations, and commercial insurance policies).
-25-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
Patient accounts receivable by financial class as a percentage of total patient accounts receivable at
December 31, 2014 and 2013, are as follows:
2014 2013
Medicare 44 % 50 %
Blue Cross 19 13
Medicaid 1 2
Other third-party payors 33 32
Patients 3 3
100% 100%
The Medicare program approximated 67% of net patient service revenue for the years ended December 3 1,
2014 and 2013.
11. COMMITMENTS AND CONTINGENCIES
Operating Leases -The minimum lease commitments for various equipment and facilities under non-cancelable operating leases are in effect as of December 31, 2014, as follows:
Years
2015 $ 678,738
2016 612,756
2017 420,633
2018 335,243
2019 158,004
Thereafter 129,990
Total $ 2,335,364
Rental expense amounted to $692,393 and S581,112 for the years ended December 31, 2014 and 2013,
respectively.
Litigation - The Organization is involved in litigation arising in the course of business. After consultationwith legal counsel, management estimates that these matters will be resolved without material adverseeffect on the Organization's future consolidated financial position or results of operations.
-26-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2014 and 2013
12. FUNCTIONAL EXPENSES
The Organization provides rehabilitative health care services to patients and related support activities as
described in Note 1. Expenses related to providing these services, included in the consolidated statements
of operations at December 31, 2014 and 2013, are as follows:
2014 2013
Health care services $ 48,268,808 $ 50,523,931
General and administrative 29,608,129 31,200,424
Research 8,326,831 7,395,228
Total expenses $ 86,203,768 $ 89,119,583
13. SUBSEQUENT EVENTS
The Organization evaluated its December 31, 2014 consolidated financial statements for subsequent eventsthrough May 19, 2015, the date the consolidated financial statements were issued. The Organization is notaware of any subsequent events which would require recognition or disclosure in the accompanyingconsolidated financial statements.
-27-
SUPPLEMENTARY INFORMATION
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESNet Patient Service RevenueFor the years ended December 31, 2014 and 2013
ROUTINE PATIENT CARE
PHYSICIAN FEES
OTHER PROFESSIONAL SERVICES
Radiology - diagnostic
Laboratory
Electrocardiography
Physical therapy
Respiratory therapy
Occupational therapy
Central services
Pharmacy
Speech and bearing
Orthotics and prosthetics
Other
Total other professional services
Total patient care revenue - gross charges
LESS CONTRACTUAL ALLOWANCES
Net patient service revenue
2014 2013
Inpatient Outpatient Total Inpatient Outpatient Total
$ 60,955,900 $ - $ 60,955,900 $ 61,985,500 $ - $ 61,985,500
2,448,712 395 2,449,107 2,713,452 236 2,713,688
580,900 220,307 801,207 381,918 250,160 632,078
2,698,548 - 2,698,548 2,676,350 237 2,676,587
452,126 1,490,812 1,942,938 518,323 1,222,952 1,741,275
13,199,079 15,126,968 28,326,047 13,401,808 12,017,076 25,418,884
2,918,093 - 2,918,093 2,425,836 - 2,425,836
11,651,279 1,31 1,159 12,962,438 12,049,797 1,066,392 13,1 16,189
1,572,249 7,706 1,579,955 1,532,205 8,088 1,540,293
4,919,834 22,513 4,942,347 5,657,629 28,629 5,686,258
2,276,457 658,235 2,934,692 2,261,672 501,634 2,763,306
210,229 - 210,229 253,387 1,330 254,717
- - - - 325 325
40,478,794 18,837,700 59,316,494 41,158,925 15,096,823 56,255,748
103,883,406 18,838,095 122,721,501 105,857,877 15,097,059 120,954,936
(52,326,960 ) (9,268,368 ) (61,595,328 ) (50,201,619 ) (7,420,639 ) (57,622,258 )
$ 51,556,446 $ 9,569,727 $ 61,126,173 $ 55,656,258 $ 7,676,420 $ 63,332,678
-29-
THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESOther Revenue and Net Assets Released From Restrictions - OperationsFor the years ended December 31, 2014 and 2013
2014 2013
OTHER REVENUE
Employees' benefit contributions
Purchase discounts
Sale of medical abstracts
Community fitness center
Rental of space
Apartment housing rental
Offsite programs
Miscellaneous
Total other revenue
NET ASSETS RELEASED FROM RESTRICTIONS - OPERATIONS
Accorda Studies
Balcofen Study
Kohlberg Grant
Neuro Rehab Fellowship
Gift Shop
Wheelchair Athletics
Will Rogers Pulmonary Fund
Yale Iris Study
Other
Total net assets released from restrictions - operations
$ 902,132 $ 801,476
9,921 4,489
2,344 2,152
567,285 535,376
1,062,132 1,011,803
445,775 423,450
2,702,084 2,544,749
10,025 195,103
$ 5,701,698 $ 5,518,598
$ 12,428 $ 39,054
- 20,655
51,041 39,277
120,000 -
47,112 33,209
22,311 18,732
80,000 95,000
33,556 -
31,594 16,384
$ 398,042 $ 262,311
-30-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESChanges in Temporarily Restricted Net Assets - Specific Purpose FundFor the years ended December 31, 2014 and 2013
Net Assets
December 31 , Investments
2013 Contributions Return
Audio-visual Laboratory S 753 S - S -
Accorda Studies 12,428 - -
ARA Research Institute 15,815 - -
Baclofen Study - 24,730 -
Kohlberg Grant 70,723 - -
Burke Gift Shop 196,264 59,357 248
Child Care Fund 454 - -
Design for Disabled 1,772 - -
Employee Recognition 2,025 8,410 85
Goldstein Foundation - 50,000 -
Gisondi Alz Rehab 20,000 15,000 -
Heart Monitor Fund 2,773 500 -
Home Health Education Fund 124,043 - 11,410
IMPAX Spinal Cord Injury 3,250 - -
Keiuiedy Duncan Fund 1,609,509 - 109,593
Leahy Pulmonary Fund 106,444 200 -
Medical Director 39,167 - -
Myerson Equipment Fund 89 - -
Nielsen Foundation Handcycling 35,583 - -
Novella Clinic Study 1,425 23,482 -
Nuero Rehab Fellowship 120,000 - -
Patient Greenhouse Fund 6,603 2,275 -
Prosthetic Fund 30,928 2,745 -
Quintiles Drug Study - E2020 499 - -
Opteuvusight 950 - -
Rheumatology 5,879 - -
Social Service 24,568 5,500 -
Speech and Hearing 10,275 - -
Spinal Cord Studies 14,250 - -
Sports Neurology 8,215 - -
Vocational Education 4,977 - -
Volunteers Fund 15,675 5,025 -
Wheelchair Athletics 165,337 32,465 -
Will Rogers Fund - 80,000 -
Yale IRIS Study - 47,081 -
Net Assets Releasedfrom Restrictions
Capital
Operations Acquisitions
Net Assets
December 31,
2014
S - S - $ 753
12,428 - -
- - 15,815
- - 24,730
51,041 - 19,682
47,106 62,801 145,962
- - 454
- - 1,772
8,594 - 1,926
- - 50,000
- - 35,000
- - 3,273
- - 135,453
- - 3,250
- - 1,719,102
790 - 105,854
- - 39,167
- 89
- 35,583 -
529 - 24,378
120,000 - -
6,874 - 2,004
2,231 - 31,442
- - 499
- 950
- - 5,879
(929) - 30,997
- - 10,275
9,264 - 4,986
1,750 - 6,465
2,490 - 2,487
- 5,605 15,095
22,318 3,787 171,697
80,000 - -
33,556 - 13,525
5 2,650,673 5 356,770 5 121,336 5 398,042 5 107,776 5 2,622,961
-31 -
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESExpensesFor the years ended December 31, 2014 and 2013
MEDICAL REHABILITATION SERVICES
NURSING AND MEDICALGeneral nursing
Medical services
Admitting
General services
Total nursing and medical
OTHER PROFESSIONAL
Radiology - diagnostic
Laboratory
Electrocardiography
Physical therapy
Occupational therapy
Pharmacy
Speech and hearingOrthotics and prostheticsMedical recordsSocial service
Total other professional
AMBULATORY CARE
GENERAL SERVICES
Dietary
Operation and maintenance of plant
Housekeeping
Laundry and linen
Total general services
2014 2013
Salaries Supplies and Salaries Supplies and
and Wages Other Expenses Total and Wages Other Expenses Total
$ 12,587,553 $ 594,447 $ 13,182,000 $ 12,543,563 $ 492,257 $ 13,035,8208,130,624 1,246,589 9,377,213 7,416,085 1,125,298 8,541,383260,649 5,324 265,973 257,672 5,839 263,51187,611 328,714 416,325 86,217 298,884 385,101
21,066,437 2,175,074 23,241,511 20,303,537 1,922,278 22,225,815
165,724 153,549 319,273 220,230 154,775 375,005
- 759,502 759,502 - 749,237 749,237223,361 47,327 270,688 214,283 49,093 263,376
4,725,190 179,984 4,905,174 4,705,733 176,269 4,882,0022,619,090 61,281 2,680,371 2,697,022 76,374 2,773,396910,781 1,153,006 2,063,787 888,389 1,117,445 2,005,834835,678 12,372 848,050 822,274 15,824 838,098
- 171,553 171,553 - 218,731 218,731276,368 69,375 345,743 290,273 55,345 345,618783,043 20,569 803,612 877,097 17,923 895,020
1,363,939 1,151,740 2,515,679 1,361,643 1,142,018 2,503,6611,881,572 2,095,261 3,976,833 1,869,945 2,303,303 4,173,2481,026,883 420,998 1,447,881 1,027,162 412,214 1,439,376
97,533 2,795 100,328 106,823 5,452 112,275
$ 4,369,927 $ 3,670,794 $ 8,040,721 $ 4,365,573 $ 3,862,987 $ 8,228,560
-32-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESExpensesFor the years ended December 31, 2014 and 2013
MEDICAL REHABILITATION SERVICES
ADMINISTRATIVE AND FISCAL SERVICES
Executive office
Fiscal office
Personnel
Purchasing and storeroom
Communication
Volunteer service
Data Processing
Insurance
Public relations
Development
Managed care
Total administrative and fiscal services
PROVISION FOR BAD DEBTS
EMPLOYEE BENEFITS
Pension and other postretirement benefit expenses
Federal Insurance Contributions Act taxes
Health insurance
Workers' compensation insurance
Unemployment insurance
Disability insurance
Total employee benefits
INTEREST
DEPRECIATION AND AMORTIZATION
Total medical rehabilitation services
2014 2013
Salaries Supplies and Salaries Supplies andand Wages Other Expenses Total and Wages Other Expenses Total
$ 600,949 $ 1,526,193 $ 2,127,142 $ 580,032 $ 1,539,872 $ 2,119,904
2,170,388 528,589 2,698,977 2,146,412 491,895 2,638,307
531,644 255,971 787,615 518,587 235,074 753,661
225,294 4,932 230 , 226 224,432 5,096 229,528
123,991 128,489 252,480 121,133 124,743 245,876
71,724 2,823 74,547 67,233 3,485 70,718
1,106,904 1,229,930 2,336,834 1,035,572 1,092,182 2,127,754
- 706,768 706,768 - 1,347,508 1,347,508
179,647 741,114 920,761 159,058 740,319 899,377
410,475 229,731 640,206 402,326 216,414 618,740
5,421,016 5,354,540 10,775,556 5,254,785 5,796,588 11,051,373
- 203,418 203,418 - 268,465 268,465
- 2,703,226 2,703,226 - 4,935,818 4,935,818
- 3,035,473 3,035,473 - 2,954,156 2,954,156
- 6,163,832 6,163,832 - 6,429,875 6,429,875
- 561,716 561,716 - 523,780 523,780
- 40,542 40,542 - 49,823 49,823
- 47,779 47,779 - 47,670 47,670
- 12,552,568 12,552,568 - 14,941,122 14,941,122
- 59,964 59,964 - 73,511 73,511
- 3,939,144 3,939,144 - 3,935,074 3,935,074
S 41,489,031 S 30,584,818 S 72,073,849 5 40,727,068 5 33,431,716 5 74,158,784
-33-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESExpensesFor the years ended December 31, 2014 and 2013
MEDICAL REHABILITATION SERVICES
FOUNDATION SERVICES
Grantor services
Management and general
Total foundation services
MEDICAL RESEARCH SERVICES
2014 2013
Salaries Supplies and Salaries Supplies and
and Wages Other Expenses Total and Wages Other Expenses Total
$ - $ 4,927,671 $ 4,927,671 $ - $ 5,158,751 $ 5,158,751
5,486,846 5 ,486,846 - 6 ,473,474 6,473,474
Medical research 4,052,442 3,220,758 7,273,200 3,528,888 3,274,263 6,803,151Employee benefits - medical research - 1,181,961 1,181,961 - 1,087,793 1,087,793Management and general 1,629,951 2,804,780 4,434,731 1,667,707 2,729,360 4,397,067
Interest expense - 110,457 110,457 - 119,343 119,343Employee benefits - management and general - 475,402 475,402 - 518,482 518,482Salary and employee benefits - other 437,000 (159,318) 277,682 - - -Depreciation - 1,407,097 1,407,097 - 1,353,585 1,353,585
Total medical research services 6,119,393 9,041,137 15,160,530 5,196,595 9,082,826 14,279,421
Subtotal expenses 47,608,424 45,112,801 92,721,225 45,923,663 48,988,016 94,911,679
CONSOLIDATING ENTRIES - (6,517,457 ) (6,517,457 ) - (6,792,096 ) (6,792,096 )
Consolidated expenses $ 47,608,424 $ 38,595,344 $ 86,203,768 $ 45,923,663 $ 42,195,920 $ 88,119,583
-34-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESRefundable Advances and Grant RevenueFor the years ended December 31, 2014 and 2013
ccount Name
Refundable
Advances
Decembel31,
2013
Gifts
Donations
and Federal
Giants Gi ants
Expendihues
Direct Iodiiect
Costs Costs
Consoltioms /
Equipment
Additions
Reclasses
and
Ti ansfels
Refundable
Advances
Decembel31,
2014
PRIVATE GRANTS
EISAI- Jo dan $ 1,478 $ $ $ $ $ $ $ 1,478
National Pat kinsons - - - - - - 5,111111 5,111111
Lupus Foundation - - - - - - - -
Huntei C ollege - - - - - - - -
Ch e b ook 15,302 - - 3,836 - - - 11,466
C ai disc Fund 3,318 - - - - - - 8,318
Forest Pharmaceutical 277 - - - - - - 277
Scallon 157 - - - - - - 157
Korean Unne sov 57 - - - - - - 57
Animal Care C ente 161,241 - - (16,623) - - - 177,864
Fuj ismNa (oil) 1,265 - - - - - - 1,265
UC SD Coop Studv - - - - - - - -
Mitio Detects-Gibson 4,781 - - (234) - - - 5,1115
Cornell Fellm+ship - - - - - - - -
Mt Sinai 21,31111 - - 111,948 - - - 111,352
Dana Foundation - - - (3,1146) - - (3,1146) -
Haitman Foundation 31,941 - - 511,111111 - - - 31,941
Cornell Newop otection - - - (6,653) - - (6,653) -
Fai - - - (6,573) - - (6,573) -
IRSF Fund I I I - - 6,625 - - - 1,486
Donald Spelling Fund 28,4115 250 - - - - - 28,655
Allen & Co Goldtine 9,256 4,333 - 6,253 - 556 (2,333) 4,447
Hottman LaRoche 13,762 - - 13,762 - - - -
No%aitis Jo dan 51,1178 - - - - - - 51,1178
Dana Foundation- Eldei 44,693 - - 311,833 - - - 13,8611
The accompanying notes are an integral part of these Consolidated financial statements
-35-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESRefundable Advances and Grant RevenueFor the years ended December 31, 2014 and 2013
ecowV Name
Refundable
4dhance,
December 31,
2 013
Gift,
Donations
and Federal
Giant, Giant,
Rear Foundation $ 12446 $ - $
lohmon & lohmon 3 309 5 000
C annel Fundk 150 788 19 828
Marti of Din 19 530 -
Adelson Foundation 3S9222 -
km n,an Diabe(es 4»o, - 103 500
Staub Pephdel - 172 927
C HDIMto DN slundion - 201 717
US Nrae[ Binational 14680 -
Adelson-LangleN 259 970 -
\ uttal Rehab 12465 -
Reese Foundation - Zhong 250 -
Pa,ifi, Northmrst Labs - 9 205
Restore Nruro Iini II 8111, 243500
Umn,al SC I PR 10 823 14 540
Adelson Edti ar& - -
Brain Map Stud} Labar 2 24b 140
Retinal Photo- Pni,kN - 13 323
USM4, - O'Donovan - 197 600
Can el- Fnel 99517 -
(an el- Donohoe 99 059 -
(an rl- Cannel 107425 -
( an el- PruskN 76754
Pathmaker Mobilit 24070 -
Skirball- Edtlards 50000 -
NRF Korea 31 022 - -
Retrial Res ardh 20 000 10 000
R his Res ardh Fund 7 050 -
(101(111110i D - -
Skirball - Hill - 99936
Run 4 Brad - 430 223
Tmw RoN Fund - 121 OSb
Refundable
Eapendttwe, Concotwmc/ Reclace &d5ance,
Duect Induect Equipment and December 31,
Co't' Co't' 4ddltion, Tian,fetc 2014
$ - $ - $ - $ - $ 12446
434 `5' 7 52-1
54 087 - 29 515 4 000 61 011
16 805 16S0 - - 1 045
201 646 - - ('_0743) -
S7106 13066 - 1S40) 24SS
12S 972 25794 - (IS 161) -
12S043 15537 - (5S 137) -
19 267 2 890 - 7477 -
275 017 - 3 065 is 112 -
- _ - - 12465
250
13113 Soo - 4705 -
165 S74 2S 199 3 12S 56403 1145;5
? 179 - - (7 999) 14485
,4908 - - 34 9S4 76
- - - - 2 386
- - - 110655) 2665
99 071 - - (49 b43) 18 886
23 551 75 966
57:92 41 667
5421S - - - 51, 210
:6 65 : - 40 101
(930) - - (25 000) -
3 170 - 3 143, 21 000 64 657
- - - - 31 0"
3 285 - - - 26 715
- - - - 7050
51157 - - - (51157)
- - 100 000 b4 -
b4300 - 14S S13 1437 21S 547
757`S _ - _ 45 148
The acconipan17ng notes are an integral part of these consolidated financial statements
-36-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESRefundable Advances and Grant RevenueFor the years ended December 31, 2014 and 2013
ccount Name
Refundable
Adhauces
December 31 ,
2013
Gifts
Donations
and Federal
Giants Giants
Direct
Costs
Expeudrtuies
luduect
Costs
Cousmhums/
Equipment
Additions
Reclasses
and
Ti ausfeis
Refundable
Adhauces
December 31,
2014
Ne\ston NBT Fund $ - $ 30 616 S - S 126 283 S 26 568 S - S 122 205 S -
Ashen Fund - l annel - 490 344 - 49 651 - - (326 896) 113 796
Ashen Fund - Donohoe - - - 48 612 - - 163 448 114 836
Ashen Fund - ('upta - - - 20 805 - - 163 448 142 643
Vagus Nene Stimulation - - - 16 570 15 742 - 32 312 -
Neilsen Foundation - 150 000 - 28 577 - 16 423 - 75 000
onrell Auclmm Attention - - - 25 125 - - 25 125 -
Regeneion Autounmune - - - 15 230 4 269 - 19 799 -
JDRF Newo VisLtilai - 98 970 - 56 328 5 614 1 043 - 32 955
C oiiiell D Beta Hul o\\ - - - 26 800 - - 26 800 -
Han e\ Kelse\ Fund - 2 300 - - - - - 2 300
Wings toi Lite Fund - 76 169 - 25 829 - - - 50 340
C olumbia Ma shal Fund - - - 10 500 9 975 - 20 175 -
S( I Oiha Hill Fund - - - 39 540 - - 39 540 -
S( I Oiha Willis Fund - - - 98 681 - - 98 681 -
Daedalus Fund - - - 8 012 - - 8 012 -
ADDF Bentotunure Fund - 125 000 - 27 916 - - - 97 081
Donohoe Pi hate Funds - 6 990 - - - - (740) 6 250
S( I Equipment - - - - - 139 607 139 607 -
Put mo P mate Funds - 10 000 - - - - - 10 000
N) S Legislate e l annel - - - 6 851 - - 6 851 -
N) S Retinal Studs - 51 722 - 86 817 17 369 - 52 494 -
Sti oke ReseaR h 20 068 1 510 - - - - - 21 608
N\SSCIRB - Langley - 72 515 - (7700) (1540) - (80224) 1231
Alzheone 's Disease- Shi 234 22 487 - 234 - - (22487) -
N) S Alzheone 's Disease - Jo clan - 23 887 - 117 038 - - 93 151 -
Alzhelmer s ResearLh 138 9 303 - - - - - 9 441
Aloida - C amlel - 68 438 - 32 832 8 208 - - 27 398
Reseaidi Fund 11 510 6 500 - - - - - 18 010
Medial Due to s Fund 586 50 020 - 18 981 - - - 31 625
Broke Foundation chant - 12 070 - - - - - 12 070
The acconipan17ng notes are an integral part of these consolidated financial statements
-37-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESRefundable Advances and Grant RevenueFor the years ended December 31, 2014 and 2013
Account Name
C oldsnuth Foundation A
C oldsnuth Foundation B
C oldsnuth Foundation C
Dr I Foundation
Total prnate grants
FEDERAL (,RANTS
NIA-Mitochondrial Dvshinction in Aging
N WDS-Intur^ and adaptation in the de\elopmg rat corticospinal
N WDS-HDAC 6 Target for regeneration tollo%N m, mturs
NICHHD-Transcramal Direct Current S[mudation & Robotics
NEI-B-RAF dries regeneratne axon gro%Nth in the optic ner e
NINDS-hupact of BDNF SNP on stroke-induced plasticity
ND-I-Role of C D36 in Ischenuc Inflammation
NINTH-Allelic Choice in Rett Syndrome
NEI-Retinal Neural Processing During Retinal Degenerate e
NINDS-Using transcription factors to enhance transplanted
NICHHD-Assessing arousal regulation in post-stroke apathy
N IC HHD-Non-m\ asn a stimulation for mipro\ mg motor function
NWDS-Mechanisms of cerebral palsy reco\er^ induced b^ balancing
NICHHD-hupact of motor connectnit\ on etticac^ of hand therapy
NICHHD-Neural predictors of hand therapy etticac^ in children
NIA-Bentotianuue in Alzheimer's Disease
NIA-Plasticity in Aging
Total fede al pants
Totals
Refundable Gifts Refundable
Ad%ances Dona t ions Expenditures Consortiums/ Reclasses Ad%ances
December 31, and Federal Direct Indirect Equipment and December 31,
2013 Grants Grants Costs Costs Additions Transfers 2014
S 45 946 x 75 000 x - x 39 318 x - x 28 595 x - x 53 033
34 909
SI25
75 000
-
-
-
-
-
-
-
-
-
-
-
1 u9 909
?I 250
S 1 851 692 x 3 106 309 x - x 2 694 181 x 174 823 x 473 891 x 554 709 x 2 169 915
S - x - x 1 479 695 x 499 545 x 376 158 x 603 992 x - x -
18 023 166 688 13 335 - - -
- - 412640 213428 172 876 26 336 - -
- - ,90 019 221 547 189 020 179 4512 - -
- - 495 708 309 543 165 729 20436 - -
3814122 206 169 172243 - - -
- - 460 196 243 292 197 066 20 138 - -
383 823 218 952 161 871 - - -
- - 411 5224 2234 754 176 770 - - -
- - 19, iii W 284 95 269 - - -
- - 21 938 20313 1 625 - - -
- - 251 753 114761 109 023 27 969 - -
- - 104 637 110015 8 801 ( 14 179) - -
1 u9 993 56 407 53 586 - - -
- - 24621 12626 I 1995 - - -
81 8 41 949 3985! - - -
15u 556 248 926 201 630 - - -
6,036,191 3,019,199 2,152,848 864,144
S 1851 692 x 3 106 309 x 6 036 191 x 5 713 280 x 2327671 x 1 338 035 x 554 709 x 2 169 915
The acconipan17ng notes are an integral part of these consolidated financial statements
-38-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statements of Financial PositionAs of December 31, 2014
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Short investments
Assets whose use is limited required for current liabilities
Accounts receivable for services to patients - net
Prepaid expenses
Inventory of supplies
Due from affiliated organizations
Other receivables
Total current assets
ASSETS WHOSE USE IS LIMITED
Foundation funds
Trusteed funds
Self-insurance trust
Restricted use cash
Depreciation fund
Donor-restricted lonerterm investments
Less assets whose use is limited required for current liabilities
Deferred financing costs - net
Interest rate cap
Property, plant and equipment - net
Total assets
Elimination Consolidated
Hospital Foundation Institute Total Entries Balances
S 13.601.956 S 3.020.131 S 1.849.213 S 18.471.300 S - S 18.471.300
158.264 - - 158.264 - 158.264
808.678 - - 808.678 - 808.678
8.662.540 - - 8.662.540 - 8.662.540
1.458.963 - 143358 1.602.321 - 1.602.321
543.542 - - 543.542 - 543.542
667.298 - - 667.298 (667.298) -
1.455.214 17.495 2.306.208 3.778.917 - 3.778.917
27.356.455 3.037.626 4.298.779 34.692.860 (667.298 ) 34.025.562
- 93.854.367 - 93.854.367 - 93.854.367
26.245.577 - - 26.245.577 - 26.245.577
2.612.707 - - 2.612.707 - 2.612.707
212.678 - - 212.678 - 212.678
31.776 - - 31.776 - 31.776
2.866.329 - - 2.866.329 - 2.866.329
31.969.067 93.854.367 - 125.823.434 - 125.823.434
(808.678 ) - - (808.678 ) - (808.678 )
31.160.389 93.854.367 - 125.014.756 - 125.014.756
- 89.924 89.924 - 89.924
8.249 8.249 - 8.249
22.217.173 - 9.174.670 31.391.843 - 31.391.843
S 80.734.017 S 96.891.993 S 13.571.622 S 191.197.632 S (667.298 ) S 190.530.334
The aeeonipan17ng notes are an integral part of these consolidated financial statements
-39-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statements of Financial PositionAs of December 31, 2014
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued expenses
Current portion of long -term debt
Estimated self-insurance liabilities
Third party payables
Refundable advances
Accrued retirement benefits
Due to affiliated organizations
Total current liabilities
Long -terns debt, net of current portion
Estimated self-insurance liabilities, net of current portion
Accrued retirement benefits
Total liabilities
NET ASSETS
Unrestricted
Temporarily restricted
permanently restricted
Total net assets
Total liabilities and net assets
Elimination Consolidated
Hospital Foundation Institute Total Entries Balances
S 1,671,717 S 29,094 S 412,696 S 2,113,507 S - S 2,113,507
2,543,336 - 854,903 3,398,239 - 3,398,239
250,257 - 347,461 597,718 - 597,718
596,000 - - 596,000 - 596,000
2,174,360 - - 2,174,360 - 2,174,360
- - 2,169,915 2,169,915 - 2,169,915
2,018,223 - - 2,018,223 - 2,018,223
- 155,109 512,189 667,298 (667,298 ) -
9,253,893 184,203 4,297,164 13,735,260 (667,298 ) 13,067,962
620,089 - 5,211,911 5,832,000 - 5,832,000
2,522,640 - - 2,522,640 - 2,522,640
57,378,641 - - 57,378,641 - 57,378,641
69,775,263 184,203 9,509,075 79,468,541 (667,298 ) 78,801,243
7,548,208 96,707,791 4,062,546 108,318,545 - 108,318,545
2,622,961 - - 2,622,961 - 2,622,961
787,585 _ - 787,585 _ 787,585
10,958,754 96,707,791 4,062,546 111,729,091 - 111,729,091
S 80,734,017 S 96,891,994 S 13,571,621 S 191,197,632 S (667,298) S 190,530,334
The acco lpan) In notes are an integral part of these consolida ted finan cial statements
-40-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statements of Financial PositionAs of December 31, 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Short investments
Assets whose use is limited required for current liabilities
Accounts receivable for services to patients - net
Third Party receivables
Prepaid expenses
Inventory of supplies
Due from affiliated organizations
Other receivables
Total current assets
ASSETS WHOSE USE IS LIMITED
Foundation funds
Trusteed funds
Self-insurance trust
Restricted use cash
Depreciation fund
Donor-restricted long-term investments
Less assets whose use is limited required for current liabilities
Deferred financing costs - net
Interest rate cap
Property, plant and equipment - net
Total assets
Elimination Consolidated
Hospital Foundation Institute Total Entries Balances
$ 11.392.266 5 3.955.881 5 2.180.668 5 17.528.815 5 - S 17.528.815
760.261 - - 760.261 - 760.261
764.775 - - 764.775 - 764.775
7.725.841 - - 7.725.841 - 7.725.841
2.746.835 - - 2.746.835 - 2.746.835
1.538.442 - 88.803 1.627.245 - 1.627.245
509.062 - - 509.062 - 509.062
391.267 - 32.012 423.279 (423.279) -
1.3 83.127 14.875 1.425.745 2.823.747 - 2.823.747
27.211.876 3.970.756 3.727.228 34.909.860 (423.279 ) 34.486.581
- 97.005.718 - 97.005.718 - 97.005.718
25.411.971 - - 25.411.971 - 25.411.971
2.544.780 - - 2.544.780 - 2.544.780
217.775 - - 217.775 - 217.775
31.776 - - 31.776 - 31.776
2.986.897 - - 2.986.897 - 2.986.897
31.193.199 97.005.718 - 128.198.917 - 128.198.917
(764.775) - - (764.775) - (764.775 )
30.428.424 97.005.718 - 127.434.142 - 127.434.142
95.514 95.514 - 95.514
- - 39.155 39.155 - 39.155
23.357.333 - 9.968.723 33.326.056 - 33.326.056
5 80.997.633 5 100.976.474 5 13.830.620 5 195.804.727 S (423.279 ) 5 195.381.448
The aeeonlpan) In notes are an integral part of these consolidated financial statements
-41 -
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statements of Financial PositionAs of December 31, 2013
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Accnied expenses
Current portion of long -term debt
Estimated self-insurance liabilities
Refundable advances
Accnied retirement benefits
Due to affiliated organizations
Total current liabilities
Long -term debt, net of current portion
Estimated self-insurance liabilities , net of current portion
Accnied retirement benefits
Total liabilities
NET ASSETS
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liabilities and net assets
Elimination Consolidated
Hospital Foundation Institute Total Entries Balances
$ 2,629,059 $ 195,917 $ 669,973 $ 3,494,949 $ - $ 3,494,949
2,490,179 - 853,012 3,343,191 - 3,343,191
235,921 - 347,461 583,382 - 583,382
547,000 - - 547,000 - 547,000
- - 1,851,692 1,851,692 - 1,851,692
1,803,045 - - 1,803,045 - 1,803,045
- 423,279 - 423,279 (423,279 ) -
7,705,204 619,196 3,722,138 12,046,538 (423,279 ) 11,623,259
870,345 - 5,559,372 6,429,717 - 6,429,717
2,569,456 - - 2,569,456 - 2,569,456
28,828,756 - - 28,828,756 - 28,828,756
39,973,761 619,196 9,281,510 49,874,467 (423,279 ) 49,451,188
37,585,614 100,357,278 4,549,110 142,492,002 - 142,492,002
2,650,673 - - 2,650,673 - 2,650,673
787,585 - - 787,585 - 787,585
41,023,872 100,357,278 4,549,110 145,930,260 - 145,930,260
$ 80,997,633 $ 100,976,474 $ 13,830,620 $ 195,804,727 $ (423,279) $ 195,381,448
The aeeonlpan17ng notes are an integral part of these consolidated financial statements
-42-
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statement of OperationsFor the year ended December 31, 2014
Elimination Consolidated
Hospital Foundation Institute Total Entries Balances
UNRESTRICTED NET ASSETS
REVENUES
Net patient set vice tevenue $ 61,126,173 $ - $ - $ 61,126,173 $ - $ 61,126,173
Giant tevenue - - 13,643,645 13,643,645 (4,264,660) 9,378,985
Othet tevenue 7,553,777 - 100,715 7,954,495 (2,252.797) 5,701,695
Medicate technology stimulus tevenue
^
1,314,327 - - 1,314,327 - 1,314,327
Net assets teleased fiom testttctions - opetations 395,042 - - 395,042 - 395,042
Total tevenues 70,692,319 - 13,744,363 84,436,652 (6,517,457 ) 77,919,225
EXPENSES
Salaties and wages 41,459,031 - 6,119,393 47,608.424 - 47,608.424
Supplies and expenses 13,829,724 5,456,846 6,019,947 25,336,517 (6,517,457) 18,819,060
Employee benefits 12,552.568 - 1,495,045 14,050,613 - 14,050,613
Depteciation and atuottization 3,939,144 - 1,412,688 5,351.832 - 5,351.832
Provision lot bad debts 203,418 - - 203,418 - 203,418
Ititetest 59,964 - 110,457 170,421 - 170,421
Total expenses 72.073.849 5,456,846 15,160,530 92,721,225 (6,517,457 ) 86,203,768
Loss fiotu opetations (1,351,530 ) (5,456,846 ) (1,416,167 ) (8.284.543 ) - (8.284.543 )
NONOPERATING GAINS AND (LOSSES) - NET
Contributions 94,982 528.150 - 623,132 - 623,132
Change in fait value of intetest Late cap - - (30,906) (30,906) - (30,906)
Untestticted incotue on investments 513,467 1,311,092 - 1,524,559 - 1,824,559
Realized gains (losses) on investments - net 555,694 3,304,459 - 3,563,153 - 3,563,153
Change in untealized gains and losses on trading secutities (252,709 ) (2,591,135 ) - (3,143,844 ) - (3,143,844 )
Nouopetating income - net 914,434 2 , 252,596 (30,906 ) 3,136,124 - 3,136,124
Excess of tevenue (deficiency in) and gains over
expenses and losses (467,096) (3.234,250) (1,447,073) (5,145,419) - (5,145,419)
OTHER CHANGES IN UNRESTRICTED NET ASSETS
Net assets teleased fiotu testttctiotis - capital acquisition 107,776 - 545,274 653,050 - 653,050
Othet accrued tetuemeut benefit adjustment (29,678,088) - - (29,678,088) - (29,678,088)
Tiansfets fiom (to) affiliates - (41 5.234 ) 415,234 - - -
Itictease (dectease) in unrestricted net assets $ (30,037,405 ) $ (3,649,484 ) $ (456, 565) $ (34,173,457) $ - $ (34,173,457)
The acconlpan17ng notes are an integral part of these consolidated financial statements
- 43 -
THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statement of OperationsFor the year ended December 31, 2013
Elimination Consolidated
Hospital Foundation Institute Total Entries Balances
UNRESTRICTED NET ASSETS
REVENUES
Net patient service revenue S 63.332.678 S - S - 5 63.332.678 5 - 5 63.332.678
Grant revenue - - 12.775.478 12.775.478 (4.279.772) 8.495.706
Other revenue 7.915.787 - 115.135 8.030.922 (2.512.324) 5.518.598
Medicare technology stimulus revenue 1.723.232 - - 1.723.232 - 1.723.232
Net assets released from restrictions - operations 262.311 - - 262.311 - 262.311
Total revenues 73.234.008 - 12.890.613 86.124.621 (6.792.096 ) 79.332.525
EXPENSES
Salaries and wages 40.727.068 - 5.196.595 45.923.663 - 45.923.663
Supplies and expenses 14.213.544 6.473.475 6.003.622 26.690.641 (6.792.096) 19.898.545
Employee benefits 14.941.122 - 1.606.275 16.547.397 - 16.547.397
Depreciation and amortization 3.935.074 - 1.353.585 5 .288.659 - 5.288.659
Provision for bad debts 268.465 - - 268.465 - 268.465
Interest 73.511 - 119.343 192.854 - 192.854
Total expenses 74.158.784 6.473.475 14.279.420 94.911.679 (6.792.096 ) 88.119.583
Loss from operations (924.776 ) (6.473.475 ) (1.388.807 ) (8.787.058 ) - (8.787.058 )
NONOPERATING GAINS AND (LOSSES) - NET
Contributions 252.421 580.504 5.245 838.170 - 838.170
Change in fair value of interest rate cap - - 15.340 15.340 - 15.340
Unrestricted income on investments 505.395 1.964.425 - 2.469.820 - 2.469.820
Realized gains ( losses ) on investments - net 844 .653 4.984.715 - 5.829.368 - 5.829.368
Change in unrealized gains and losses on trading securities 2.241.837 8.489.422 - 10.731.259 - 10.731.259
Nonoperating income - net 3.844 .306 16.019.066 20.585 19.883.957 - 19.883.957
Excess of revenue ( deficiency in) and gains over
expenses and losses 2.919.530 9.545.591 (1.368.222) 11.096.899 - 11.096.899
OTHER CHANGES IN UNRESTRICTED NET ASSETS
Net assets released from restrictions - capital acquisition 149.135 - 550.989 700.124 - 700.124
Other accrued retirement benefit adjustment 17.456.731 - - 17.456.731 - 17.456.731
Transfers from ( to) affiliates - (799.960 ) 799.960 - - -
Increase (decrease) in unrestricted net assets 5 20 .525.396 5 8.745.631 5 (17.273 ) 5 29.253.754 5 - 5 29.253.754
The acconlpan17ng notes are an integral part of these consolidated financial statements
-44-