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HomeMy WebLinkAboutCOM 0667.033 1998-2000Stephen K. Yamashiro Mayor • Couutp of 3atuaii • DEPARTMENT OF FINANCE 25 Aupuni Street, Room 118 • Hilo, Hawaii 96720 -4252 (808) 961-8234 • Fax (808) 961-8248 HAWAII COUNTY NONPROFIT GRANTS (FY 2000 -01) HUMAN SERVICES NONPROFIT GRANTS REVIEW COMMITTEE (HSNPGRC) FISCAL YEAR ENDING:June 30. 2001 DATE OF APPLICATION: January 18 2000 GRANT APPLICATION FOR: West Hawaii Counseling and Supportive Living Project (Program Tide) Legal Name of Organization: Kapiolani Medical Center for Women and Children ( Kapi Child Protection Center) Mailing Address: 55 Merchant St.. 72nd Floor, Rim Hawaii 96813 Facility/Site Address: 74 -5605 Alapa St. B 5 & 6 Mez. Kailua Kona HI 96740 Director /Site Manager: Mary Jo Westmoreland Phone: 329 -4020 Organization President: Frances A. Ballot Phone: 983 -8274 'C..Vice President & CEO Contact Person (Grant Writer) Mary Jo Westmoreland Phone: 329 -4020 Amount of request for County funds: $ $20,000 Total annual budget of organization: $ $423,376 Has the applicant applied for any other funds from the County of Hawaii this fiscal year? Yes Source /Department: Agency /Program(s): (x Social Services �(5 Youth Programs -5 Elderly Programs Check Category (ies) 0 Culture and Arts (S Education (.-S Other Briefly define the program for which funding is being requested: Title 1V13 West Hawaii C 1 1/Nsta sin& d Faire F wi Harry A Takahashi Drrector S K. Schutte Deputy co No •li 1_• . • • n•) 1. 1 - •• ft - pro v idds counseling, supportive living .and 'supportive services for famil where there is a risk of child abuse or neglect. 1 Comm. No 6•47• File No 4 Ref- To • 1 Ref. Date FEB 2 3 2000 ♦t.. 4 •• 1 • • I. OUALIFYING STANDARDS FOR APPLICANTS An applicant must meet all of the following standards: is Be chartered or otherwise authorized to do business in the State for charitable purposes and exempted from the Federal income tax by the Internal revenue Service. (5 Have a governing board whose members serve without compensation and have no conflict of interest between their regular occupations and the services provided. 0 Have bylaws or policies which describe the manner in which business is conducted, including management, audit, fiscal policies and procedures, policies on nepotism, and policies on management of potential conflict of interest. (5 Have at least one year's experience with the service or activity for which the appropriation is sought or can otherwise demonstrate to the satisfaction of the County sufficient expertise to successfully carry out the service or activity. (5 Be licensed and accredited in accordance with applicable requirements of Federal, State and County laws. II. GRANT CONDITIONS The applicant agrees to comply with the following terms & conditions prior to receiving a grant award. A. Comply with applicable Federal and State laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or handicap. B. Agree not to use any public funds for purposes of entertainment or perquisites. C. Comply with such other requirements as the Director of Finance may prescribe to ensure adherence by the nonprofit organization with Federal, State, and County laws, and established standards for fiscal and program management. D. Allow the Director of Finance, the committees of the council and their staffs, and the Legislative Auditor access to records, reports, files, and other related documents in order that the program, management, and fiscal practices of the nonprofit organization may be monitored and evaluated to assure the proper and effective expenditure of public funds. III. RECORDS AND REPORTS A. The applicant shall follow generally accepted accounting procedures and practices and shall maintain books, records, documents, and other evidence, which sufficiently and properly account for the expenditure of County funds. The books, records and documents shall be subject at all reasonable times to inspection, reviews, or audits by the County expending agency, the Director of Finance, and the Legislative Auditor, or by their representatives. B. The County expending agency, Director of Finance, or County Council may request periodic written reports on the use of County funds. C. The nonprofit organization shall submit a final written report to the Legislative Auditor within sixty (60) days after June 30 of the fiscal year. The report shall include an explanation of the public benefits derived from the awarding of the grant and a listing of other funding sources and amounts obtained during the award period. 7 IV. QUARTERLY ALLOCATION V. GRIEVANCE PROCEDURE • • Under no circumstances shall grant funds be disbursed in a lump sum payment. Grant funds will be disbursed to Grantees only through a quarterly allocation process. The disbursement of grant funds can be formulated on an equal quarterly apportionment basis. The applicant will adopt and maintain a grievance procedure to assure proper accounting for any concerns and complaints about its programs or services that may arise from its members, employees, clients or from other members of the public. VI. DISCLOSURE OF INFORMATION All information, data, or any other material provided to the County by virtue of this application shall be subject to the Uniform Information Practices Act (UIPA), ch. 92F, Hawaii Revised Statutes. All such material is deemed government record and shall be open to the public and may be provided to other public and/or private funding sources. VII. CONTINUED ELIGIBILITY Any applicant or recipient who withholds or omits any material facts or deliberately misrepresents such facts to the County of Hawaii shall: I) Immediately be disqualified from consideration for Nonprofit Grant funding; OR 2) be in violation of the terms of the Grant Agreement of County funds in which case a grant agreement can be terminated by the County and the recipient or provider may be liable to reimburse all or a portion of any funds received therein. VIII. ACKNOWLEDGMENT Kapi'oiani Mecial Center for Wcmen and Children (Legal Name of Organization) hereby agrees to administer the Kapiolani Child Protection Center West Hawaii Counseling and Supportive Living Project (Program Title) in accordance with the regulations, policies and procedures prescribed by the Hawaii County Finance Department. Distribution of grant funds is limited to grantees, ,which are in compliance with County regulations, policies and procedures. The County reserves the right to withhold grant distributions at any time the grantee is not in compliance. It is the policy of the County of Hawaii and for those who do business with the County to provide equal employment opportunities to all persons regardless of race, physical disabilities, color, religion, sex, age, or national origin as mandated by the Federal Civil Rights Acts, as amended, and any other federal or state laws relating to equal employment opportunities. IX. AMENDMENTS TO THE APPLICATION/EVALUATION The applicant assures that it will submit to the HSNPGRC for prior review and approval, a written request and justification for any changes, additions, or deletions to any portion(s) of the grant application or a duly executed Grant Agreement of County Funds. The applicant will cooperate and assist in any effort undertaken by the HSNPGRC to evaluate, inspect or otherwise monitor the effectiveness, feasibility, and/or cost efficiency of any and all practices, policies and procedures or activities pursuant to this application or any grant designation or allocation received as a result of this application. 3 Signature of PresidentlChairperso • • X. AUTHORITY AND CAPACITY OF APPLICANT The applicant certifies that it has the authority and capacity to develop and submit this application, and to fully administer the program(s) pursuant to this application. UNSIGNED PROPOSALS WILL NOT BE ACCEPTED! i /L ...en 4., 0 Signatur xecutive Director/Manager 4 Cq Date 74/ Date A. Overview 1) Describe the program for which funding is being requested. HAWAII CO HUMAN SERVICES NON - PROFIT G PROPOSAL KAPI'OL CHILD PROTECTION CENTER - HA I ISLAND Funding is being requested to support the West Hawaii Counseling and Supportive Living Project. This project is primarily funded through a Federal Title IV -B Subpart 2 Family Preservation and Support Grant, administered by the State Department of Human Services. We are requesting twenty thousand dollars ($20,000) to assist with operational support of the project. This project has been designed to assist individuals and families in providing a safe and nurturing home for children. A primary focus of this project is to provide services for parents who are addicted to substances and need support and assistance to recover from their addictions so that they may appropriately care for their children. This project offers services to families who are actively involved with Child Welfare Services because of child abuse and neglect or the threat of harm. and to families who need services as a diversion from active CWS involvement. Services are also available to families who have not been reported to DHS -CWS, but where a risk of child abuse and neglect has been identified. 2) What unique or significant services will be provided? This project is unique in that it offers services aimed at improving outcomes for long -term substance abuse recovery and safety of children in families at risk of child abuse. A flexible array of services is available to each client, with individual services being accessed based on the specific needs of the individual and family. Services include comprehensive service needs assessment, referral to and linkage with other community service providers, mental health assessment and counseling, medical needs assessment and medical care coordination. The project also offers life skills education and specialized parenting classes for addicted parents in recovery, anger management education, family home visiting and other wrap around supportive services that may be needed. Payment of Therapeutic Living Services for substance abusing pregnant women and mothers who have entered outpatient substance abuse treatment is also provided. A staff core team of professionals provides many of the direct services to clients, with linkage and referral made to other agencies or private practitioners, as appropriate. The Kapi' olani Child Protection Center (KCPC) core team consists of a Service Coordinator, two Clinical Social Workers, a Clinical Nurse Specialist, two Clinical Care Coordinators, a Clerk Typist an Administrative Secretary and the Branch Administrator. KCPC has established either Memorandums of Agreement or contracts for payment with a number of agencies and professionals throughout the West Hawaii Area, so that the widest possible choice of services is available to clients. Services are free to clients, although at times a client may be asked to share in the cost as part of their individualized service plan. 3) What specific outcomes are to be achieved? 80% of clients referred will be fully assessed to determine their status and service needs 80% of families that complete a service plan will have had no new report of child abuse or neglect at discharge 80% of families that complete a service plan will have established and implemented a child safety plan at discharge 80% of clients completing their service plans will demonstrate improvement in one or more of the following targeted areas: Improved individual functioning Improved problem solving skills Improved family relationships Improved parenting skills Improved family support Substance Abuse Recovery (still engaged in the recovery process) • B. Problem/Need • Kapi'ol Protection Center - West Hawaii Page 2 4) How will the proposed program empower participants/clients to become self - sufficient and facilitate positive social change? Of most importance to this project is the willingness and ability of clients to voluntarily participate and complete services. To this end, clients are informed at intake that they will be expected to participate in the development of their service plan and will be asked to develop and implement a child safety plan prior to discharge. Additionally, clients are informed that they will be dismissed from the project if they repeatedly fail to keep service appointments, are unavailable for tracking or refuse to participate in agreed upon services. We focus most of our energy and efforts on working with families where there is a high probability of success for reducing the risks of child abuse and neglect. Clients are required to develop an individualized service plan, identifying with project staff the outcome goals to be met through the project, and needs that will be met through their own initiative. Throughout their time in the project, clients are assisted in developing a clean and sober lifestyle and life skills that will serve them once their involvement in the project has ended. Delivered services are targeted to achieve the identified positive outcomes that will reduce the risks of child abuse and neglect. It is expected that participants will proactively advance towards outcomes they themselves identify. 1) What is the problem /need the proposed program is designed to meet? DHS -CWS units report that up to 90 percent of CPS reports involve substance abuse by one or both of the parents or primary caregivers. Family Crisis Shelter, Inc. reports that up to 90 percent of women seeking shelter services for themselves and their children and 90 percent of men referred for anger management classes have problems with abuse of drugs and/or alcohol. Family Support Services of West Hawaii reports that 75 to 90 percent of the families involved in the Healthy Start program have substance abuse problems. Clearly, drug and alcohol abuse is the number one risk factor for child abuse and neglect in West Hawaii. In addition to the risks created by drug and alcohol abuse, domestic violence, economic hardship, divorce and custody problems and emotional instability of caregivers also create risks of harm to children. Where these risks are present, there is a great need for a wide array of services to assist families in maintaining a drug free /violence free lifestyle where children are nurtured and safe. In recent years, availability of mental health services for at risk parents has diminished. Many families have become ineligible for QUEST insurance, because of changes in the Welfare laws, and are unable to pay regular health insurance premiums and so have lost access to mental health services. Many other families, who do have either QUEST or regular health insurance, are unable to obtain needed mental health services because of the limited number of providers available in the area and/or because of restrictions placed on the number and/or type of mental health visits allowed. The West Hawaii Counseling and Supportive Living Project is designed to address the needs of families with substance abuse problems and provide targeted services to assist caregivers in their substance abuse recovery. The project also partially bridges the gap between families in need of mental health services and availability of those services. 2) Who are the target population and what are the specific needs? The primary target group for this project is families in West Hawaii who are at risk of child abuse and neglect because of substance abuse by one or more of the primary caregivers. Most of these families are actively involved with CPS. Most services are provided to the caregivers in the family although services are provided to children as well. Caregivers of children at risk, usually the parents, need counseling services to address mental health issues and improve their individual functioning. They need family violence intervention services, especially anger management counseling and education. They also need life skills education to prepare them for living a clean and sober lifestyle and specialized parenting education to help them understand their children's need and accept parenting responsibilities. These caregivers need to learn how the abuse of drugs /alcohol harms their children, and how substance abuse harms their relationship with their children. Most of these caregivers need treatment for addictions and some need Therapeutic Living Services in a safe residential environment to begin their treatment. Most of these caregivers also need long term supportive services to help them maintain a lifestyle that ensures the safety and well being of their children. A second target population is families who have been investigated by CPS, found to be at risk, and diverted to the project for intensive services but without active CPS involvement. A third target group is families who are in crisis and, who have acknowledged a need for assistance and have asked for help on their own. These families often need only short-term counseling, support or linkage with other agencies to resolve the crisis and reduce the risk of harm to their children. A fourth target group is families who are preparing to or have adopted a child who was abused or neglected by their biological parents. These children and the adoptive parents need • Kap' i Child Protection Center - West Hawaii Page 3 transition counseling as they move through the adoptive process and soinetimes crisis intervention after the adoption has been completed. 3) What is the geographical area(s) to be served, facility and hours of operation. The geographic area to be served covers the entire West Hawaii region, which includes the districts of North and South Kohala, North and South Kona, and Kau to Pahala. Staff provided, or contracted, services are available throughout the region. The Kapi'olani Child Protection Center office in West Hawaii is located at 74 -5605 Alapa Street B -5 &6 Mez, Kailua -Kona, HI 96740. The office houses all staff, with closed offices available for confidential intakes, assessments and counseling. Regular office hours are Monday through Friday from 8:00 a.m. to 4:30 p.m.. However, staff provided services are available during the early moming hours, and during the evening and on weekends, as needed, to accommodate the client's schedule. Many of the services provided by the project are delivered to clients in locations other that the KCPC office. Intakes and assessments may be completed at the client's home or another location agreeable to the client. Outside services paid for with project funds are obtained by the client at the provider's location (e.g. Bridge House, ACCESS, BISAC, FCSI, private practitioners, etc.). C. Collaboration /Coordination 1) What specific measures will be taken to collaborate /coordinate with other community resources to achieve maximum program efficiency and cost effectiveness? This project was specifically designed as a collaborative and coordinated endeavor. Regional Planning Committees were established in 1994 to assess community needs. Members of the Regional Planning Committee included representatives from most human service agencies in the region, as well as representatives from the business community, state agencies, and the general public. From the RPC needs assessment, the West Hawaii Counseling and Supportive Living Project was developed. Over the past four years, as Federal funding became available, Memorandums of Agreement and Service Contracts were developed between KCPC and other agencies. These include DHS, DOH, Public Health Nursing, Probation, Bridge House, DASH, BISAC, ACCESS, FCSI, FSSWH, QLCC, and CFS. These documents outline specific services available to project clients from each agency or provider, referral mechanisms, payment options and levels of participation in the project. Several contracts have also been developed with private counseling practitioners throughout the region. Additionally, a drug baby protocol has been developed with Kona Hospital and North Hawaii Hospital. One of the primary tasks of the Project Service Coordinator is to continually further collaboration, working with agencies to develop or revise MOA's. An additional task is to ensure that services for clients are obtained efficiently and cost effectively. A comprehensive intake is completed with each client requesting services. During the intake process, clients identify other agencies they may currently be involved with and previous services they may have received. The Coordinator works with clients throughout the time they are involved with the project, holding case conferences, as needed, with the client and other providers, in order to enhance service delivery. To facilitate coordination, a confidential release of information form has been developed, that allows client information to be shared between agencies. All clients participating in the project must voluntarily sign this release before being accepted into the program. Discretion is used in both obtaining and disseminating sensitive client information. As stated above, contract agreements have been established with many agencies and private practitioners. Reasonable fees for service have been negotiated with these providers and costs are monitored closely. An extensive computer database has been developed to track client services, involvement with other agencies and achievement of outcomes. In 1999, the Neighborhood Place of Kona was opened. The NPK is the result of years of planning by the statewide DHS Blueprint for Change Committee, the West Hawaii Title IV -B /2 Regional Planning Committee and the West Hawaii Neighborhood Place Steering Committee. The NPK is a place where families can go to receive help from community agencies when a risk of child abuse or neglect has been identified, The NPK is one of two pilot sites in the state. Numerous public and private agencies as well as private practitioners have made a commitment to deliver services directly at the Neighborhood Place and/or to be linked with families through the Neighborhood Place. KCPC staff members have been involved in Neighborhood Place planning from the start. Since its opening, KCPC staff have been working closely with NPK staff, sharing service tasks on families served jointly and cross referring as appropriate. Since September 1999 KCPC staff have been providing a parenting class for substance abusers in recovery at the Neighborhood Place. • C. Collaboration /Coordination (Continued) Kapi'ol ild Protection Center - West Hawaii Page 4 2) How will these measures reduce or eliminate any existing duplication of services to your designated target group? Reduction or elimination of duplication of service is a primary goal of this project. All of the above measures facilitate this goal. Client service needs are established and prioritized during the intake process. Current and former providers are then reviewed and additional appropriate provider(s) identified to meet current service needs . Although there may at times be some overlap of service components, duplicate services are effectively eliminated. Through tracking of client participation and progress and frequent communication between the numerous agencies and private practitioners involved in the project, client needs are met without duplication of services. Joint service planning between the KCPC Title IV -B Project, the NPK, FSSWH, CFS and other private providers ensures coordinated service delivery and prevents duplication of services. D. Goals and Objectives 1) What are the major goals/benchmarks of the proposed program? • Promote and participate in a collaborative community continuum of care to support the treatment of addictions, promote long term recovery and prevent initial and subsequent incidents of child abuse and neglect. • Promote and participate in a collaborative community continuum of care to improve the functioning of at risk caregivers and prevent initial and subsequent incidents of child abuse and neglect. • Promote and participate in a collaborative community continuum of care to improve the delivery and coordination of services for families at risk for child abuse and neglect. 2) What specific objectives /action steps are planned for each goal? • Enhance effectiveness of treatment of drug and alcohol addictions by providing access to counseling and supportive services for long term recovery of child caregivers. • Enhance access to and effectiveness of therapeutic support and education for at risk families leaming to develop and maintain healthy family relationships. • Enhance access to and effectiveness of mental health services for family members experiencing problems that interfere with family well being. • Enhance access to and effectiveness of service delivery for at risk families through the development of individualized service plans and collaborative service coordination. 3) What is time timeline (start and end dates) for each action step. This project began in October 1995 with the provision of mental health assessment and counseling services for at risk families. Services were limited to individual counseling with contracted private practitioners. In October 1996, family and group counseling services were added through the addition of a staff clinical social worker and a contractual agreement with ACCESS Enterprises. This component of the program is ongoing. In January 1998, group- counseling services were started for women completing formal substance abuse treatment and transitioning from Supportive Living. Mental health services are added or augmented when indicated by client needs, when other service programs are established, and when providers entering the area introduce new options. In October 1996, the Supportive Living component was added to the project when Bridge House began accepting women into their residence. In January 1997 an in -house counseling/parenting group was started at Bridge House by the project clinical social worker. Access through the project to anger management classes, parenting classes, childcare assistance, medical care coordination and family home visiting began in October 1996. These components are ongoing. Service Coordination began on a limited basis in October 1995 and has been expanded over the past four years. In July 1999 two Clinical Care Coordinators were hired in addition to the Service Coordinator. These staff members are counseling professionals who provide the long -term support, case management and life skills education needed by clients. We are currently in the process of hiring • Kap•i Child Protection Center - West Hawaii Page 5 another Clinical Social Worker with substance abuse expertise, to expand our capacity to provide in -house assessment and counseling services. In April 1999 we began joint service planning with the Neighborhood Place. We also began integration of outreach services into the program with the use of the NPK outreach worker. In July, 1999 we were awarded a four year contract with DHS -CWS to provide short term social services to families reported to CPS but assessed to be at low to moderate risk. These families are referred to the Diversion Program. We have integrated this program with the Title IV -B project administratively to provide a continuum of care for families. Those families needing longer than three weeks intervention (maximum service time allowed by the Diversion Contract) can now be automatically transitioned into the Title IV -B project or to the Neighborhood Place. In July 1999 we began development of the Adoptive Services component of the project. Working with DHS, CFS and QLCC we developed a referral protocol and identified needed services. These are: transitional counseling for children moving from foster care to adoption and for foster parents becoming adoptive parents; pre and post adoptive crisis intervention; long term post adoptive support. In September 1999 we started the first in a series of parenting classes for caregivers in substance abuse recovery. These classes are held at the NPK and have been very successful. We are beginning our third series of classes at this time and are fully booked, as we were with the first two sessions. These parenting classes are the only ones in West Hawaii specifically designed to address the unique needs of substance abusers in recovery. In October 1999 project evaluation was expanded to include both a three -month and a six -month follow -up of families who completed a service plan and were successfully discharged. The results of these follow -up contacts should provide us with good information on the long-term safety of the children involved. All of the objectives of the project have been met to at least a minimal degree. At this time the action steps planned are 1) Continuous upgrading of the project database 2) Ongoing planning between the Regional Planning Committee, DHS, NPK and KCPC to develop services, ensure seamless and timely referrals, and prevent duplication. 3) Hiring of additional counselor with substance abuse treatment expertise —Jan-Feb 2000 4) Augmenting existing direct services - Ongoing 5) Working with the state legislature to securing additional funding for long term family treatment of substance abuse - 2000 4) What significant client centered outcome(s) will the program achieve? KCPC staff members work with each client to develop an individualized service plan that identifies the targeted personal outcomes to be achieved and the services to be provided to achieve those outcomes. As part of the individualized service plan, each client outcome to be achieved has corresponding behavioral objectives to be met. 80% of clients referred will be fully assessed to determine their status and service needs 85% of families that complete a service plan will have had no new report of child abuse or neglect at discharge 85% of families that complete a service plan will have established and implemented a child safety plan at discharge 85% of clients completing their service plans will demonstrate improvement in one or more of the following targeted areas: Improved individual functioning Improved problem solving skills Improved family relationships Improved parenting skills Improved family support 50% of clients completing their service plans will still be engaged in a substance abuse recovery process at discharge 5) How many participants /clients will attain at least one personal program outcome or show measurable progress towards program goals? We anticipate being able to serve 125 families with available funding. We estimate that we will serve 175 individuals within these families. Forty percent (50 families, 70 individuals) will need assessment services only or assessment services with linkage to other services in the community. Sixty percent (75 families, 105 individuals), will establish an individualized service plan. Seventy-five percent (56 families, 79 individuals) will complete their individualized service plan and eighty-five percent of these clients, or 67 individuals, will attain at least one personal program outcome or show measurable progress towards program goals. • E. Service Delivery As described above, service delivery will be accomplished through a combination of staff delivered services, payment to contracted service providers and linkage with other agencies. Services will be delivered in clients' homes, the KCPC office, the NPK, and other community providers' locations. Methodologies will include any and all social service interventions identified as appropriate to meet family member needs. F. Evaluation • 1) Client evaluation and progress measurement. Kapi'ol•ild Protection Center - West Hawaii Page 6 The Coordinator will make an initial determination with the client of the service needs, goals, objectives to be met and outcomes to be achieved. A child safety assessment will also be completed at Intake. A discharge interview will take place at the conclusion of services to determine a client's assessment of whether needs have been met and goals and outcomes have been achieved. Written progress reports will be completed by staff and contracted providers to clinically assess a client's movement and progress in meeting goals and achieving outcomes. Frequency of reports will be determined at the time the individualized service plan is developed. Progress reports will evaluate client outcome achievement using progress measures established in the service plan. Prior to discharge, and if indicated, during the course of service involvement, project staff will complete a second child safety assessment to evaluate client progress in relation to child safety. Additionally, prior to discharge, each client will be asked to develop and implement a child safety plan. The client will take responsibility for identifying each child's needs and indicating how they will meet those needs and ensure the child's safety and well being over the long term. Throughout a family's participation in the project, and at case closure, feedback will be solicited from DHS -CWS social workers to determine if there have been any new CPS reports, and to determine if children have been removed from the home, reunified with their primary caregivers or transitioned for adoption. Three months after a family has completed their service plan and the case closed, KCPC staff will contact the family by phone to check on the safety of the children and well being of all family members and offer additional assistance, if needed. CPS records will also be checked again to determine if there have been any new CPS reports. Six months after a family has completed their service plan and the case closed, KCPC staff will make a home visit to talk with family members in person, again checking on the safety of the children and well being of all family members. A third and final check of CPS records will also be made. 2) Project evaluation. At the time of discharge, clients will be asked to complete a client satisfaction inventory to determine their satisfaction with services and how they were delivered. On a quarterly basis, the Regional Planning Committee will review service delivery. On a yearly basis, DHS -CWS social workers will be asked to complete a project satisfaction inventory to determine their satisfaction with services and how they were delivered. On a yearly basis, DHS Program Development will complete a site visit to review and evaluate the project. G. Program Fees 1) Does your organization charge a membership fee for service participants? No 2) Does the proposed program charge participants a fee for service(s) provided by your organization? No, all services are free to the client with one exception. If it is determined, during the individualized service planning process, that it would be beneficial for the client to share in the cost of services (such as to show their commitment to services or because services are Court mandated) a client may be asked to pay a contracted provider a portion of the service fee. If it is determined that a client's health insurance will cover the cost of a service, that client's health insurance will be billed. H. Viability • Kap • Child Protection Center - West Hakaii Page 7 1) What is your justification or rationale for the expenditure of public funds for the proposed program? Our main rationale for the expenditure of public funds is that we feel the community has a responsibility to promote the safety and adequate care of children. Abuse of drugs and alcohol has become epidemic in West Hawaii, resulting in great harm both to children and their parents. Intensive and long -term services are needed to help these families recover from substance abuse. Most of these parents are not able to provide appropriate care for their children without life skills and parenting education, counseling and other supportive assistance. Many of these parents do not have the financial means to obtain the help they need. Use of public funds is therefore appropriate, especially if it saves even one child from abuse or neglect. 2) What are your financial and programmatic plans to sustain the proposed program beyond the upcoming fiscal year. Federal funding for the project has been committed through June 200Iand will quite likely be renewed for another five years when the current funding expires. As a member of the Child Abuse and Neglect Legislative Roundtable, the Branch Administrator is working with DHS and DOH administration and key state legislators to develop additional funding for family treatment services. We will continue to work with the State Department of Human Services, the West Hawaii Regional Planning Committee, the Blueprint For Change Task Force, the County of Hawaii and other funding sources to evaluate the effectiveness of the project and obtain long-term funding. I. Budget Please see attached. ORGANIZATION /AGENCY INFORMATION A. Board of Directors 1) Has the organization's Board of Directors received formal training within the past two (2) fiscal years? a) What plans do you have to provide formal training to your current Board of Directors? The Board of Directors of KMCWC meet with all Executive members as well as Board Chairpersons on a regular basis. They are provided with "The Board Book" which is a comprehensive manual containing KMCWC organizational information and their role and responsibility as a Board member. The manual is regularly updated to provide the Board members apprised with the most current organizational information. b) When will the next Board training be completed? Board training is ongoing as members feel the need to meet with Executives about various areas of the organization. The Board Book is also updated annually. c) How will you provide formal training to newly arriving board members or board members who missed scheduled training? New Board members will meet with each Executive member and various Board Chairs and will be provided with "The Board Book" and "The Board Book, Appendixes ". 2) What are the primary roles and responsibilities of your organization's Executive Director. The primary roles and responsibilities of Kapi'olani Medical Center for Women and Children's Executive Vice President & CEO is to provide leadership, direction, and administration of all aspects of hospitaWmulti- hospital activities and other corporate entities to ensure compliance with established objectives and the realization of quality, economical health care services, and other related lines of business. The KMCWC Executive Vice President functions as a member of the KH executive management team to fulfill the mission of the medical center within the context of a comprehensive health care system. The primary roles and responsibilities of the Kapi'olani Child Protection Center's Hawaii Island Branch Administrator include hiring, supervision, evaluation, and termination of staff for both the East Hawaii and West Hawaii offices; program development and accountability; budget preparation and accountability, grant writing; networking with other community agencies; provision of direct consultation and coordination services and other activities to ensure that quality services are effectively delivered. 3) What are the primary roles and responsibilities of your organization's Board of Directors? (Clarify role of executive officers vs. General membership) The primary roles and responsibilities of Kapi'olani Medical Center for Women and Children's Board of Directors are to attend board meetings and exercise such powers as acquire and dispose of property, elect officers and appoint agents, determine all matters affecting finances, make rules and regulations, create committees of the Board, and generally, to do any lawful act necessary or proper to carry into effect the powers and purposes of the medical center. The Board's role and responsibilities are further described in the enclosed Bylaws of KMCWC. B. Past Performance • 1) How effective has your organization /agency been in achieving program goals in the past two (2) fiscal years? Include the following information: a) Quantitative data on numbers served; and b) Qualitative data showing number and °A, of participants achieving measurable outcomes. Clients Served Please see information listed below. Targeted Outcomes TITLE IVB COUNSELING & SUPPORTIVE LIVING PROJECT Kapi'ol Protection Center - West Hawaii Page 8 FY 1997 -98 (10/1/97- 6/30/98) FY 1998 -99 (7/1/98- 6/30/99) (10 Month Contract Period) (12 Month Contract Period) # Families Referred 126 107 CPS Diversion 7 5.6% 24 22.4% Active CPS 58 46.0% 35 32.7% Non -CPS 61 48.4% 48 44.9% # Adults Referred 189 169 # Children Referred 247 239 # Families Who Received Direct Services 118 104 # Adults Who Received Direct Services 122 124 # Children Who Received Direct Services 26 34 # Families Who Refused Services or No Contact established 8 7 Achievement of Proposed Outcomes (Closed Cases Only) FY 1997 -98 (10 Month Contract) FY 1998 -99 (12 Month Contract) Number Percent Number Percent Total Families Closed 88 98 Families Assessed For Service Needs 58 65.9% 81 82.7% Families Who Established a Service Plan 55 62.5% 72 73.5% Families Who Completed a Service Plan 44 80.0% 56 ' 77.8% Families who had no new report of child abuse /neglect at case closure 88 100.0% 95 96.9% Clients who maintained Substance Abuse Recovery 22 78.6% 26 74.3% Clients who improved individual functioning 25 80.6% 41 80.4% Clients who improved problem solving skills 16 80.0% 31 81.6% Clients who improved family relationships 22 91.7% 26 81.3% Clients who improved parenting skills 6 75.0% 13 92.9% Clients who improved family support 5 83.3% 9 88.9% Targeted outcome data is collected on individual family members who complete a service plan only. Financial • Kap i Child Protection Center - West Ha&vaii Page 9 1) Have your organization's current program operations remained the same as last year? What major program or financial changes will be incurred next year? On June 30, 1999, KCPC completed its subcontract agreement with Family Support Services of West Hawaii to provide services for the Comprehensive Partnership For Families (CPFF) program. KCPC chose not to continue this contractual relationship beyond the initial contract period. On July 1, 1999 KCPC was awarded a four year DHS contract to provide Child Abuse and Neglect Diversion Services. This program has been integrated with the Title IV -B Counseling And Supportive Living Project to ensure a continuum of care for families at risk. The West Hawaii Title IV -B /2 project received a 10 percent funding increase for fiscal year 1999 -00. This increase was primarily to allow for three and six month follow -up of families completing their service plans. We anticipate that there may be an additional small funding increase for the Project next year, as Federal Title IV -B funds will be increased. 2) What is the status of all of your organization's major contracts or agreements for the coming year (employment agreements, office leases, primary grant revenue /supplier, etc.)? Our current Title IV -B Counseling and Supportive Living Project contract with DHS was renewed on July 1, 1999 and has an automatic renewal option to June 30, 2001 if services have been effectively delivered, which they have. Our Multidisciplinary Team contract with DHS expires on June 30, 2001. Our DHS CA/N Diversion contract was awarded on July 1, 1999 and expires June 30, 2003. Employment agreements with staff are ongoing and expire only when an employee resigns or is terminated for cause. Contracts with other agencies and private practitioners expire on June 30, 2000 with automatic renewal for one year if services are effectively delivered. Our current lease with Xerox for a copier expires on June 30, 2000 and will be renewed. Our current office lease expires on June 30, 2000, with an option to renew for two more years. 3) How does the proposed program fit into your organization's long range financial plan? The West Hawaii Counseling and Supportive Living Project currently represents about one half of the revenue in the KCPC West Hawaii office. As with other DHS contracts, the viability of this program is always subject to the availability of govemment funds. Federal Funding of the Project may be renewed for another five years once the current funding period expires in 2001. The State's commitment to long range funding for this program is yet to be determined. At this time, Kapi'olani Medical Center for Women and Children cannot commit to long range funding of this program without government support. It is therefore not included in KMCWC's long range financial plan. D. Monitoring 1) During the past two (2) years, what financial and /or administrative monitoring has your organization received from any and all funding sources? Monitoring has been provided by the State of Hawaii Department of Human Services. Monitoring has included site visits and review of quarterly financial and program reports. The DHS program monitor for the Title IV -B Counseling and Supportive Living Project is Laura Giddings (phone - 974 - 4000 -6 -5692 or 1 -(808) 586 - 5692). Monitoring has been provided by the Hawaii Island United Way. Monitoring has included a site visit by the allocations committee prior to determination of funding approval and review of quarterly financial and program reports. Information on HIUW program monitory may be obtained from Carol Feldman, Vice President (phone 326- 7400). The County of Hawaii has also provided monitoring. Monitoring has include a site visit by County Council members prior to determination of funding approval and review of semi - annual and annual reports to the County Council. Information on County of Hawaii program monitoring may be obtained from Helen Matsui (phone 961 - 8259). • E. Alcohol, Tobacco and Drug -Free Workplace Policies and Information Kapi'ola 'Id Protection Center - West Hawaii Page 10 1) How does your organization address alcohol, tobacco and other drug prevention information dissemination as part of your workplace and /or program environment? Kapi'olani Health has established "House Rules" and a "Drug Free Workplace Policy ". These documents are provided to all employees of KCPC as part of orientation. The West Hawaii Counseling and Supportive Living project has as one of its main purposes the reduction or elimination of alcohol and drug abuse. Substance abuse information is disseminated to clients in various ways; through counseling, literature and medical consultation. Clients are not provided services while under the influence of drugs or alcohol. POSITION TITLE -.' ;' ..'`PRECEDING FLSCALYEAR: "" :r `' "a: +.` : °= :FIS =01 =; Item # ' Employee ' - • `„ (Last Name=First)., :: , '. Status ' and: . Salary, Total Agency Budget FY 99 -00 Total Program Budget FY 99 -00 Total Agency Budget FY 2000 -01 Total Program Budget FY 2000 -01 ;: & n i t Request 'Only ` rP r d j e ctedE a ipenditures" I. Title: Branch Administrator g. F/T - 40 hours /wk P/T - 9 hours/wk F/T - 40 hours/wk P/T - 11 hours/wk Name: Mary Jo Westmoreland $._; $48,502 $10,992 $48,502 $13,338 2. Title: Clinical Therapist P F/T - 40 hours /wk P/T - 24 hours /wk F/T - 40 hours /wk P/T - 28 hours /wk Name: Fran O'Leary Duntz $- : $48,376 $29,173 $48,376 $33,864 all Title: Clinical Nurse Specialist P ? P /T -25 hours /wk P/T- 10 hours /wk P/T -25 hours /wk P /T- 10 hours /wk Name: Carol Dinmore $ . $30,004 $12,002 $3 0,004 $12,002 4. Title: Service Coordinator A ; F/T - 40 hours/wk P/T - 28 hours/wk F /T -40 hours /wk P/T - 28 hours /wk Name: Lianne Masutomi - $ : ; $23,611 $15,635 $31,200 $20,800 5. Title: Clinical Care Coordinator P. . P/T - 20 hours /wk P/T - 6 hours /wk P/T - 20 hours /wk P/T - 6 hours /wk Name: Rebecca Transue ; "$ ":: $24,720 $8,880 $20,800 $6,240 6. Title: Clinical Care Coordinator P '; - P/T- 16 hours /wk P/T - 13 hours /wk P/T- 14 hours /wk P/T -10 hours /wk Name: Tonnie Bemhardson $ - ': $12,140 $9,384 $13,650 $9,750 7. Title: Clinical Therapist P'' P/T - 16 hours /wk P/T - 16 hours /wk P/T 16 hours /wk P/T - 12 hours /wk • Name: To Be Hired ; $. $8,320 $8,320 $16,640 $12,480 Title: Branch Secretary F/T - 40 hours /wk PIT- 16 hours /wk F /T- 40 hours/wk P/T - 16 hours/wk Name: Barbara Eldridge ;';:S . " $26,200 $10,425 $26,200 $10,425 9. Title: Clerk Receptionist P = P/T - 15 hours /wk P/T - 11 hours /wk P/T - 20 hours /wk P/T - 17 hours /wk Name: Joy Decker $ $7,941 $6,002 $13,728 $9,724 • TOTAL POSITION COUNT - , , P 9 = 6.3 FTE /wk 3.325 FTE /wk 9 = 6.775 FTE /wk 3.275 FTE /wk .TOTAL SALARJBS ?:;:. (to be reflected in Table 4):, AGENCY /ORGANIZA'T'ION: Kapi'olani Child Protection Center PROJECT NAME Title IV -B Counseling & Supportive Living Project BUDGET TABLE 1 DETAILS OF PERSONNEL SERVICES 1. All administrative and Direct Program Salaries must be included. (Please exclude non - program positions) 2. a) P= Indicate if whether employee is -- F/T =Full Time Employed (30 -40 hours per week) b) P /T= Part-Time Employed (20 or less hours per week) . ;�. .:. :POSITION 'TITLE ,; -, ' : ' i $' r t PRECEDING FISCAL :YEA1U K 4 ., a 2v l .'vrtis rii':'Y: i ^= :.� ' F ' °�' ��""��''y: ° �"�` �' ��'i FLSCAL:YEAR 41.' Item # . `.::A 'a e. T ,. .,. .. - ''.; <:`'. " ,"Emp10 ee - ` .. '': ° ;.::: ;, p y (test Name,. First). , - ;' > ' - ...... .: .,' Status _ and.,, „ Salary- Total Agency Budget FY 99 -00 Total Program Budget FY 99 -00 Total Agency Budget FY 2000 -01 Total Program Budget FY 2000 -01 f,S »yd.' .u+4t ": j .,... .'... «.: ;„ trea +Requ Only,)w Pro'ected enditiires 10. Title: Team Coordinator P, . P/T — 12 hours /wk P /T— 12 hours /wk Name: Susan Johnson $-' $9,000 $9,000 11. Title: Clinical Nurse Specialist YP: = P/T -4 hours /wk P/T — 4 hours /wk • Name: Colleen O'Sullivan "•' $-, ` $3,500 $4,500 12. Title: Clinical Nurse Specialist :`.P;:' -[ P/T — 4 hours /wk P/T — 4 hours /wk Name: To Be Hired = '- '$i. ";. $4,500 P/T — 4 hours /wk et • x;P TOTAL POSITION COUNT,' : "; : ' :'P " 12 = 6.8 FTE 9 = 3.325 FTE 12 = 6.775 FTE 9 = 3.275 FTE , , : T O T A L SAL', ARIES, ' _'''` ` ', " "" (to be reflectediri Tabia 4 , $ $246,814 $110,813 $262,524 $125,243 AGENCY /ORGANIZATION: Kapi'olani Child Protection Center PROJECT NAME Title IV -B Counseling & Supportive Living Project BUDGET TABLE 1 DETAILS OF PERSONNEL SERVICES INSTRUCTIONS: 1. All administrative and Direct Program Salaries must be included. (Please exclude non - program positions) 2. a) P= Indicate if whether employee is -- F/T =Full Time Employed (30 -40 hours per week) P/T= Part-Time Employed (20 or less hours per week) b) Salaries DESCRIPTIONS " , .' PRECEDING FISCAL YEAR;; . ,, AR00 =01 s, ", 's.FISCAL YE20 Item Emplo Beaefit Taxes'", Total Agency Budget FY 99 -00 Total Program Budget FY 99 -00 Total Agency Budget FY 2000 -01 Total Program Budget FY 2000 -01 .: Grant Request Chtly� r;' `. 'Projected . -.. ;,i Expendituresa< ;. , 2, EMPLOYEE BENEFITS (TOTAL) $24,411 $10,557 $10,557 $24,856 ;•' °.; $11,653 I Health Insurance 9.05% $18,228 $7,883 $18,560 , $8,701 Dental Insurance (Included Above) * Other Benefits (Retirement) 3,07% $ 6,183 $2,674 $6,296 $2,952 3. PAYROLL TAXES (TOTAL) ?' : $21,991 $ 9,873 ; '' $23,391 : " $11,159 • FICA 7.65% $18,881 $8,477 $20,083 $9,581 FUI (Unemployment Ins.) .33% $ 815 $ 366 $866 $413 SUI (Unemployment Ins,) 0% 0 0 0 0 =' Workers' Compensation .93% $2,295 $1,031 $2,442 ; -' $1,165 ; '• 7Y, TDI (Disability) 0% 0 :,...- , ` , 0 0 0 f:. :..':. TQTAI . .:':'.:; ;`:,:.;:.•:.. ttj lie''ceflected.'inTalile4)` " - ". ' $46,402 $20,431 $48,247 $22,812 AGENCY /ORGANIZATION: Kapiolani Child Protection Center d TABLE 2 EMPLOYEE BENEFITS/PAYROLL TAXES PROJECT NAME: Title IV -B Counseling And Supportive Living Project = MUST itemize as attachment(s). Applicable only to the ' Grant Request Only Projected Expenditures" column ll ESCRIPTiON': ' `P RECFI : ' EDING SGAI;sYE:4R '''a X ....,,. .., .... .. ...'3e <, �tr a( �. �. is +' °r;:�:�°J- '.FSCAI.YE:AEt 2000= A n ✓ r ,, .}, . ''K' f..� ''G� n N `.. _(.. 1{.'�tkv :.'e5: `� m�` 3 .. �4: `�:'.$. r .....,1. ..., , .Yt, v..'4a ...._.... � > ..- ...- ..K. .r.�.xc�".:k 5 w: *!. .w ... Item Expeii :,. a: , : -' ,;:.. ". f.,., , : =: "" "' Total Agency Budget FY 99 -00 Total Program Budget FY 99 -00 Total Agency Budget FY 2000 -01 Total Program Budget FY 2000 -01 .Gr egitReifue%stOrk s n pltCletxa k:w _ . ,., ; teci , ..4, es 1 • PROFESSIONAL FEES (TOTAL) `` $98,329 , "; :','`'. %; $49,592 'v'w zs : "; -. $102,005 >; -i "- ?" $55,743 $3,957 Legal (Incl in Admin Fees) Accounting/Bookkeeping(Admin) a s Audit Fees (Incl in Admin Fees) J " " > " "' ` ': "'' r ; "" ;: li Administrative Fees I5% 0 $46 264 e ..:° $17,532 r- =;> $48 870 '�;�µ�," t:' $20 138 t. 1� ^-` $1 957 * Other (Professional Services) $52,065 �:: $32,060 ;:_ :_ $53,135 - '' ": tl;Y'< =,`:« .; $35,605 q ya $2,000 $1,043 2• SUPPLIES x` ;:'. 'r: $3,131 °' :.t;'' "`"'' $1,500 = =? `, =, - $4,435 "i'= $2,260 ` ".' :Pt Office $2 306 °� :: M,� $1 100 .r "'' rr _ ,Fr '. $2 785 � a ":' ;A: 05 ::,.'e: $1 560 " ^ ,. : <;:t. �-:t;.: :''.�`s �.q #:'4":'. $743 ,st` +�•$.a^'.. Program $125 $75 z `:'� $450 _c<_< - Vii- � $375 .'z, �,�i. $300 Consumable $700 s...' $325 ' ^ 'ixyi Y. �'h "{' '!tLt $700 "t : +' '�R'f'�: G.d ^+•�•ti i''"µ'; $325 ` r %M: ��. ^��r 3. TELEPHONE ",`a'•`.; -� $ 4 050 `'':; "s' :, , s sx <:;.� $2,025 a �,.- ��'� $4,050 * „ k� _' . - ;;'f. r..��' $2,025 4. POSTAGE & FREIGHT 629 $_ ", ' � ... x'` . e�::Y�+N..R ^•� a $297 pw> :',: k. �xLt'', bfi t.''.. $726 " ! :iEry "' -r T�4•xY•": $396 't is `f `.a i Al OCCUPANCY k (TOTAL) i ' : Fri: $12,975 ''; $8,775 ? $13,530 = " <'x ;;}s74? : $9,225 " _ - ' -:.'° $8,000 Rent $9,825 $7,225 $7,225 a t'. .._- yy =. $10,380 :; .; .._:." : €x L $7,675 �, r °:::¢; $6,500 Utilities $3,000 ':':a $1,500 ;r:ta� �["-- �•>t•Y* $3,000 �: µ' *' ''iS.: , $1,500 "'_ ``' "AiY°'ti`. Y:'.e $1,500 r�fi,'.?'A °S -, Janitorial "�::. w >. •,'- :; : ° :. ri p. t om..= . _.. rs * Repairs and Maintenance 150 $150 - :` . -� $ 50 t` "± " ` .. ?.:i.i �1 •� $150 .a:�,' � � t ry'x ',Y "� ? ' $50..:_: ,xY�x' "•= '" ;. :: •' ' A + 4...i y# . � ., 6. EQUIPMENT (TOTAL) $3 , 000 a.. -,� _ ' , 850 $1,850 : s' . �:�'� $7 300 , 'i.i ii "'w'. w "' "' "' ` $6 $6,150 a' °ae '� .,A s $5 f 000 * Purchase $700 r , $700 $5,000 'r °" ��r:n3• $5,000 x' .,� r�;°w r3� $5,000 * Rental $2,050 w t i $1 , 025: {k(f� m� $ 2 J 050 "``'' � b:4 I $1,025 * a Repairs and Maintenance $250 . :."k`. x:'4 i. � $125 ' ' ' i �:.L'. -: . $250 ` - °xi ; ' ' ' ✓k ::."f'L`�*... $125 '.C��i�S »�•�k e: 93.''i _nw AGENCY /ORGANIZATION: Kapiolani Child Protection Center PROJECT NAME: Title IV -B counseling And Supportive Living Project TABLE 3 DETAILS OF OTHER CURRENT EXPENSES * = MUST itemize as attachment(s). Applicable only to the "Grant Request Only Projected Expenditure" column. Y AGENCY /ORGANIZATION: Kapi'olani Child Protection Center Project TABLE 3 (Continued) DETAILS OF OTHER CURRENT EXPENSES (OPERATING COSTS) PROJECT NAME: Title IV -B Counseling And Supportive Living DESCRIPTION,' i Item , •1I 7. • 10. • 12. 13. *14. *15. INSURANCE (TOTAL) General Liability (In Admin Fees) Fire (In Admin Fees) Auto (No Client Transport) NDOA (Board Insurance) (Adm Fees) PRINTING PUBLICATION & SUBSCRIPTIONS TRAVEL (TOTAL) Air Fare Per Diem Auto Rental AUTO MILEAGE REIMBURSEMENT AUTO GASOLINE PURCHASES MEMBERSHIP DUES STAFF TRAINING OTHER TOTAL;(ta be reflected .ht:TableS),. PRECEDING FISCAL'.YEAR Total Agency Budget FY 99 -00 $300 $180 $75 $50 $175 $555 $4,266 $3,000 $130,160 Total Program Budget FY 99 -00 $100 $60 $25 $25 $75 $185 $1,805 $2,000 $68,129 :FISCAL NEAR20004-0 Total Agency Budget FY 2000 -01 $300 $180 $75 $50 $175 $555 $4,375 $3,000 $140,201 Total Program Budget FY 2000 -01 $100 $60 $25 $25 $75 $185 $2,025 $2,000 $80,109 =Grant Request Only, xpenenifes , $2,000 $20,000 * = MUST itemize as attachment(s). Applicable only to the "Grant Request Only Projected Expenditure" column. P ostuon : PRECEDING FISCA YE � ` _ : :: : • { FI$CA4 EAB'200 . ''> . r `• '�' '. ''):...::;�'.:G-' : .::.,.:,'- „F >:.....�. %•';? • ' Total Agency Budget FY 99-00 Total Program Budget FY 99-00 Total Agency Budget FY 2000-01 Total Program Budget FY 2000-01 ' ,GrantRequest;;: M '' 'On1y,” •pz;; ".;;;' It 1) TOTAL POSITION COUNT (P) 6.8 FTE 3.325 FTE 6.775 FTE 3.275 FTE (Table 3) TOTAL OF OTHER CURRENT EXPENSES (Table 1) TOTAL SALARIES ($) $246,814 $110,813 $262,524 $125,243 ,`•'';`'• '? TOTALBUDGET ; ';�`.'';::�.;. : �y?� (Table 2) EMPLOYEE BENEFITS/PAYROLL TAXES $46,402 $20,431 $48,247 $22,812 .TOTAL PERSONNELCOSTS si' $293,216 $131,244 $31Q771 $148,055 zTQ TALNUMBER'OE•,POSITIONS 4 rc -;.`' `''t`' 12 9 12 9 . .. ............ _. _.... _. _ _. Ek rises z-. ,:, . : } ,." .Pe.. ... � ... . ». ..... .,, .. .. , 3 ''''�`- �.. •, ' RECEDIN PISC "" a . .. .. e . . " Total CC ISCAI:.YEAR2000 -01 : ..£ ... �t '•:,. Sv „fin " ,i i5 Total Agency enP Budget g y g FY 99 -00 Pro Budget g g FY 99 -00 Tota Agency Budget Total FY 2000.01 Total Program Budget FY 2000 -01 ":OrentReij4es{Onlp::. (Table 4) TOTAL PERSONNEL SERVICES $293,216 $131,244 $310,771 $148,055 (Table 3) TOTAL OF OTHER CURRENT EXPENSES $130,160 $68,129 $140,201 $80,109 $20,000 ,`•'';`'• '? TOTALBUDGET ; ';�`.'';::�.;. : �y?� $423,376 $199,373 $45Q972 $228,164 $2Q000 AGENCY /ORGANIZATION: Kapi'olani Child Protection Center PROJECT NAME: Title IV -B Counseling And Supportive Living Proiect TABLE 4 SUMMARY OF PERSONNEL REQUIREMENTS Personnel Requirements: Salary ($) and Number of Positions (P) TABLE 5 SUMMARY OF EXPENSES Total Budget Summary of Personnel Services and Other Current Expenses evenue Source Rroe s' PRECEDING- FISCAL YEAR,1999 00s:':r:;:rs.:. ; - ; ; ..BI YEAR t2 C L 2004-0K Total Agency Amount Total Program Amount Amount Requested Amount Projected County of Hawaii $8,595 $8,595 $20,000 State of Hawaii $219,879 $219,879 : Federal Funds $180,518 $180,518 $200,000 4 y,... „ Private FoundationsY4 United Way Funds $7,500 $7,500 $10,000 Admissions Donations $500 Fundraising ; • ;• „ ; _ , Pay Phone Vending Machines Service /Program Fees Third -party reimbursement(s) Tuition Charity Walk $5,000 $2,760 MDT Incentive Carryover $2,300 $1,500 : TOTAL REVENUES :, $424,292.00 $199,373.00 $451,379.00 AGENCY /ORGANIZATION: Kapi'olani Child Protection Center PROJECT NAME: Title IV -B Counseling And Supportive Living Project x� - Please list funding source on a separate sheet and indicate the amount requested. _ - Must correspond with Table 5. TABLE 6 Summary of Income i i i '''"-• ' ''''''' R evenue S ources '..p.:' : r t, IC .."),- 2.:,? *1:r `,..,', , • ‘'''' . ,': '': • ' , . r: 7 i; '''l ? I, ":'''' .r•r •=,' ,!,;;;■ c ';; :-/: PRECEDING FISCAL YEAR :4990;06 j. :3 , ',,f, Jen: ...,,,; PISCALYEAR ' Total Agency Amount Total Program Amount Amount Requested Amount Projected . County of Hawaii - $8,595 $8,595 $20,000 „`P:tit.f,' State of Hawaii $219,879 $219,879 :i.l lc! ; ;; ; e 2 i 1) ':, • :5 :• ',:': Federal Funds $180,518 • $180,518 $200,000 ..." . Private Foundations* c;" ,fl:-.t..r.f.I.N., " f;6;.vg. t.:''..it':' United Way Funds $7,500 $7,500 $10,000 Admissions Donations $500 Fundraising "/AFA.',;;;4Y':''"'-' ' Pay Phone ;:.97 n'="M w- 1-1114-78X-1,Vi- . i-.'1 . :""iii:. Vending Machines :,„:"; kv;)1•;-..fik--."'j; ;I.e. , IV.? ' 4 ' rt . " :, : , •`; a e:.'.....f ''''.,, e Aw“ It Service/Program Fees !. g :•, :fr.. ;•4,- 4 %. ...‘...4::,(s:,,- ••4;`■ ?,,C ', Third-party reimbursement(s) • -,4'.4,1s,'-',.-. -..,- *I v- ::,;,,, e Tuition -cr,:9-,-sriiiii c ,t ,■ ,„; i,i:, ' , y7s, ,, ,', Charity Walk $5,000 $2,760 MDT Incentive Carryover $2,300 $1,500 7 '7TOTAL REVENUES „.“ '',' $424,292.00 $199,373.00 $451,379.00 AGENCY/ORGANIZATION: Kapi'olani Child Protection Center PROJECT NAME: Title IV-B Counseling And Supportive Living Project - Please list funding source on a separate sheet and indicate the amount requested. _ - Must correspond with Table 5. TABLE 6 Summary of Income Stephen K. Yamashiro Mayor (ountp of TOatuaii DEPARTMENT OF FINANCE :5 Aupum Street. Room 118 Hilo, Hawan 96720 -4252 (8081961 -8231 • Fax (8081961 -8248 HAWAII COUNTY NONPROFIT GRANTS (FY 2000 -01) FINANCIAL OIJESTIONNAIRE Please include as an attachment an explanation for all "NO" answers to questions tt 1 thru 11 below: Yes No Harry A. Takahashi Dv;.L r S. K. Schutte Dcptcty 0 C5 1. Has the agency operated continuously for the past three (3) years? d 0 2. Has the agency operated with a positive cash flow for the past (3) years? 0 05 3. Does your Board of Directors approve a detailed cash flow budget before the beginning of each fiscal year? (5 d 4. Do your Board meeting minutes show that quarterly financial statements are approved? Financial statements are reviewed and discussed at the board mtgs. C: (5 5. Is your equity balance at least 20% of your Total Liability balance? Q 0 6. Is your Total Current Asset balance larger than your Total Current Liability balance? 7. Are bank reconciliations and accounting performed by someone other than the check signatory? e U 8. Are you fully insured for the agency's vehicle(s) and building(s)? cS (iac 9. Is your Workers' Compensation at least 2% of payroll? Self — insured 0 L) 10. Are you current (not delinquent) on all payroll and payroll tax payments? o 11. Is the agency free of any pending litigation, liens or judgments? 12. Within the past 12 months, has the agency applied for vendor or bank credit and was As the grant applicant, I certify that the agency has satisfactorily responded to each of the above questions and explained as needed I hereby certi that this information is true and correct to the best of my knowledge. Agency: Kani'olani Medical Center for Women Phone: 535 -7350 Prepared by: Donna Masuda-Kam, Director of Accounting 2 VC/9v and Children 76 Signature Date Print Name/Title denied credit? If yes, please explain. Certified by: Frances Hallonquist, Executive Vice Print Name of Executive Director President and CEO • • Combined Financial Statements Kapi`olani Heal h Years ended June 30, 1999 and 1998 • • Kapi`olani Health Combined Financial Statements Years ended June 30, 1999 and 1998 Contents Report of Independent Auditors 1 Financial Statements Combined Balance Sheets 2 Combined Statements of Operations 4 Combined Statements of Changes in Net Assets 5 Combined Statements of Cash Flows 6 Notes to Combined Financial Statements 8 EI ERNST &YOUN•P October 7, 1999 except for Note 10, as to which the date is October 18, 1999 • • 2400 Pauahi Toss 1001 Bishop Street Honolulu, Hawaii 96813.3429 Report of Independent Auditors • Plane: 808 531 2037 Board of Trustees Kapi'olani Health We have audited the accompanying combined balance sheets of Kapi'olani Health as of June 30, 1999 and 1998, and the related combined statements of operations, changes in net assets and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the combined financial position of Kapi'olani Health at June 30, 1999 and 1998, and the combined results of its operations and changes in net assets, and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Ernst & Young uP is a member of Ernst &Young International, Ltd. -t t lower-LT' 1 Assets Current assets: Cash and cash equivalents Net patient accounts receivable, less allowance for doubtful accounts (1999- $14,603,000; 1998 - 511,888,000) Other receivables Inventories Funds held by trustee under bond indenture agreement (Notes 1 and 5) Prepaid expenses and other current assets Total current assets Assets whose use is limited or restricted: Designated by Board for expansion: Cash and cash equivalents Accrued interest receivable Investments (Note 2) Rental property 2 Kapi`olani Health Combined Balance Sheets Project funds held by trustee under bond indenture agreement (Notes 2 and 5) Restricted by donor or grantor Cash and cash equivalents Grants and other receivables Rental property Investments (Note 1) Total assets whose use is limited or restricted Property and equipment, net (Notes 3, 5 and 7) Other assets: Investment in joint venture partnerships (Note 8) Deposits and other noncurrent assets Total assets June 30 1999 1998 S 40,834,714 $ 15,489,629 43,395,316 3,490,544 1,659,892 8,448,618 1,762,747 99,591,831 5,084,272 700,050 116,426,434 497,430 122,708,186 105,959 1,624,913 1,366,585 959,276 4,464,844 8,415,618 131,229,763 165,756,684 53,999,437 5,762,048 1,662,519 7,565,723 1,823,253 86,302,609 6,424,938 598,078 123,043,302 497,430 130,563,748 10,736,642 1,938,379 826,411 1,084,735 3,296,487 7,146,012 148,446,402 162,228,215 1,797,226 2,606,747 7,706,636 5,361,452 9,503,862 7,968,199 $406,082,140 $404,945,425 Permanently restricted Liabilities and net assets Current liabilities: Accounts payable Payroll and related liabilities Accrued expenses Medical claims payable Due to governmental agencies Agency fiords held for others Note payable to bank Current portion of long -term debt (Note 5) Total current liabilities Accrued benefit cost (Note 4) Long -term debt, less current portion (Note 5) Unearned income Other long -tens liabilities Net assets: Unrestricted Temporarily restricted: Specific purposes Plant replacement and expansion Total liabilities and net assets See accompanying notes. June 30 1999 1998 S 20,483,796 10,643,866 15,837,430 9,886,514 5,617,614 405,86.3 3,620,794 66,495,877 2,841,316 158,454,287 1,604,885 4,780,671 160,488,483 6,909,321 656,258 7,565,579 3,851,042 171,905,104 $ 20,394,752 11,612,453 12,012,813 10,815,807 3,967,027 38,457 3,000,000 2,652,740 64,494,049 2,631,847 162,056,574 1,535,107 2,633,062 161,489,768 6,064,446 651,223 6,715,669 3,389,349 171,594,786 5406,082,140 5404,945,425 3 Kapi`olani Health Combined Statements of Cash Flows Operating activities Change in net assets Adjustments to reconcile the change in net assets to net cash provided by operating activities: Depreciation Amortization of bond discount (Income) Loss on disposal of equipment Joint venture investment loss Net unrealized gains on investments, other than trading securities Decrease in restricted rental property Restricted investment income Changes in operating assets and liabilities: Decrease (increase) in patient accounts receivable Decrease (increase) in other receivables Increase in inventories and other assets Increase in funds held by trustee under bond indenture agreement Increase in accounts payable and accrued expenses (Decrease) increase in medical claims payable Increase (decrease) in net amounts due to third - party payors Increase (decrease) in liability for estimated malpractice costs Increase (decrease) in agency funds held for others Increase in other long -term liabilities Net cash provided by operating activities Year ended June 30 1999 1998 S 310,318 S 11,625,703 16,403,011 76,929 (149,277) 278,860 (811,271) 125,459 (461,693) 10,604,121 2,271,504 (2,282,051) (882,895) 2,917,585 (929,293) 1,650,587 27,489 367,406 2,217,387 31,734,176 14,583,586 113,368 1,894,701 440,309 (3,558,285) 131,834 (443,647) (15,601,203) (1,881,421) (3,309,038) (805,484) 9,542,746 9,036,897 (241,921) (77,047) (31,010) 2,633,062 24,053,150 6 • • Kapi`olani Health Notes to Combined Financial Statements June 30, 1999 1. Organization and Summary of Accounting Policies Kapi'olani Health ("KLW) controls Kapi`olani Medical Center for Women and Children ( "KMCWC"), Kapi`olani Medical Center at Pali Momi ( "KMCPM"), Kepi'olani HealthHawai'i ( "KHH"), Kapi`olani Health Foundation and other health care related entities located in Hawaii. KH has also organized other corporations and health care related entities to accomplish its objectives. It controls all subsidiaries through stock ownership (taxable corporations) and affiliates through board membership and management (nontaxable corporations). All interorganizational transactions and balances have been eliminated in combination. KH is a not - for -profit support organization as described in sections 501(cx3) and 509(aX3) of the Internal Revenue Code ("IRC"). KH and all other significant combined affiliates are not- for -profit corporations exempt from federal and state taxes on related income pursuant to IRC Section 501(a) and the related Hawaii Revised Statutes, respectively. The accounting principles followed by KH, its subsidiaries and affiliates, and the methods of applying those principles comply with generally accepted accounting principles and general practice within the health care industry. The significant policies are summarized below. Inventories Inventories are valued at the lower of cost (first -in, first -out method) or market Property and Equipment Property and equipment acquisitions are recorded at cost. Depreciation is computed using the straight -line method over the estimated useful lives of the assets, ranging from 5 to 40 years for buildings and improvements and 3 to 20 years for equipment. Equipment under capital lease obligations is amortized on the straight -line method over the shorter period of the lease tens or the estimated useful life of the equipment. Such amortization is included in depreciation and amortization in the financial statements. Interest cost incurred on borrowed funds during the period of construction of capital assets is capitalized as a component of the cost of acquiring those assets. 8 Property and Equipment (continued) Investments • • Kapi`olani Health Notes to Combined Financial Statements (continued) 1. Organization and Summary of Accounting Policies (continued) Gins of long -lived assets such as land, buildings, or equipment are reported as unrestricted support, and are excluded from the excess of revenues over expenses, unless explicit donor stipulations specify how the donated assets must be used. Gifts of long - lived assets with explicit restrictions that specify how the assets axe to be used and gifts of cash or other assets that must be used to acquire long -lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long -lived assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long -lived assets are placed in service. Investments in equity securities with readily determinable fair values and all investments in debt securities are measured at fair value in the balance sheet. Investment income or loss (including realized gains and losses on investments, interest and dividends) is included in the excess of revenues over expenses and reported as other revenues unless the income or loss is restricted by donor or law. Unrealized gains and losses on investments are excluded from the excess of revenues over expenses unless the investments are trading securities. Income on investments of donor - restricted funds and endowment funds is recorded as an increase in unrestricted net assets, unless restricted by the donor. Realized gains and losses are computed using the specific identification method. ICH utilizes several investment managers to diversify the investment portfolios. Investments in joint venture partnerships which are 50% or less owned are reported on the equity method of accounting which approximates KH's equity in their underlying net book values. Board - Designated Assets Board - designated assets consist of assets held by trustees under indenture agreements and unrestricted donations and accumulated income which have been designated by the Board of Trustees for expansion. The Board can redesignate these assets at its discretion. 9 Pledges 1. Organization and Summary of Accounting Policies (continued) Pledges (unconditional promises to give), Tess an allowance for uncollectible amounts, are recorded as receivables in the year made. Restricted pledges are reported as additions to the appropriate temporarily or permanently restricted net asset balance. Temporarily and Permanently Restricted Net Assets Restricted net assets consist of donations and other fimds where restrictions have been imposed as to their use by the donor for specific operating purposes. Temporarily restricted net assets consist of those net assets whose use by KH has been limited by donors to a specific purpose or time period Permanently restricted net assets consist of the principal amount of net assets whose use by donors has been restricted in perpetuity. Deferred Financing Costs Statement of Cash Flows Kapi`olani Health Notes to Combined Financial Statements (continued) Costs of issuing long -term debt have been capitalized and are being amortized over the terms of the obligations using an interest method. The amortization is included in depreciation and amortization expense. Highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents. Net Patient Service Revenue and Accounts Receivable Net patient service revenue is reported at the estimated net realizable amounts from patients, third-party payors, and others for services rendered. Retroactive adjustments are accrued on an estimated basis in the period the related services are rendered and adjusted in future periods as final settlements are determined. Significant concentrations of gross patient accounts receivable include the Hawaii Medical Service Association - 17 %, State of Hawaii's QUEST program - 17 %, Medicaid - 25 %, and Medicare - 13% as of June 30, 1999. 10 • • Kapi`olani Health Notes to Combined Financial Statements (continued) 1. Organization and Summary of Accounting Policies (continued) Charity Care KH will treat patients regardless of their ability to pay. An established charity care policy sets guidelines to determine which patients qualify for care given at no charge. Since KH does not pursue collection from qualified charity care patients, they are not reported as revenue. Recorded charity care provided in both 1999 and 1998 comprised less than 1% of total revenue. Revenues KH's purpose is to provide diversified health care services primarily in the State of Hawaii and secondarily in the Pacific Basin. Hence, operating revenues include those generated from direct patient care, rentals from medical office buildings, grants, fundraising activities, investing activities, and other revenues, all of which are either directly related to or used in support of the operation of KH's facilities. Conversely, unrestricted donations and disposal of equipment are reported as nonoperating gains and losses. HMO Premium Revenue Premiums are billed in advance of the respective coverage period and are recorded as revenue in the month services are provided. Group contracts are generally twelve months in duration, subject to cancellation, and are subject to rating, benefit and other changes negotiated on an annual basis. HMO Medical Claims Expense KHH contracts with various health care providers for the provision of certain medical care services to its members. The cost of health care services provided or contracted for is accrued in the period in which it is provided to a member based in part on estimates, including an accrual for medical services provided but not reported to the HMO. Reinsurance premiums are included in health care costs, and reinsurance recoveries are reported as a reduction of related health care costs. 12 1. Organization and Summary of Accounting Policies (continued) Fair Value of Financial Instruments The carrying amounts reported in the balance sheet for cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to the short -term nature of these instruments. Fair values for long -term debt are estimated using quoted market prices of similar types of borrowings. Use of Estimates Pension Disclosures • • - Kapi`olani Health Notes to Combined Financial Statements (continued) The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. In February 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 132, "Employers' Disclosure about Pensions and Other Postretirement Benefits" (SFAS 132). SFAS 132 revises the disclosure requirements of Statements of Financial Accounting Standards No. 87, "Employers' Accounting for Pensions ", No. 88, "Accounting for Settlements and Curtailments of Defined Benefit Pensions Plans and for Termination Benefits" and No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." SFAS 132 does not change the recognition or measurement of pension or postretirement benefit plans, but standardizes disclosure requirements for pensions and other postretirement benefits. KH adopted the provisions of SFAS 132 effective July 1, 1998. Reclassifications Certain 1998 balances have been reclassified to conform with 1999 presentation. 13 Acute hospital care Managed care Other health care related activities Management and general Designated by Board for expansion: Equity securities U.S. Treasury and agency obligations Corporate debt securities • • Kapi `olani Health Notes to Combined Financial Statements (continued) 1. Organization and Summary of Accounting Pollcin (continued) Functional Classification of Expenses The functional classification of expenses by major classes of program services and supporting activities are summarized as follows: 2. Investments Investments stated at fair value as of June 30 are as follows: 1999 1999 1998 $ 147,124,083 $ 144,722,390 55 ,371,761 29,835,324 — 2,374,327 83,890,202 82,862,577 $ 286,386,046 $ 259,794,618 $ 67,845,913 10,676,259 37,904,262 116,426,434 1998 $ 82,859,192 17,336,123 22,847,987 123,043,302 14 Notes to Combined Financial Statements (continued) 2. Investments (continued) Project funds held by trustee under bond indenture agreement: Cash and short-term investments U.S. Treasury and agency obligations Restricted by donor or grantor. Cash Equity securities Real estate U.S. Treasury and agency obligations Corporate debt securities Other changes in unrestricted net assets: Unrealized gains on other than trading securities Kapi`olani Health 1999 $ 599,130 7,955,447 8,554,577 676 2,808,724 53,178 1,181,779 420,487 4,464,844 1998 $ 30,607 18,271,758 18,302,365 1,019 1,764,163 53,178 1,258,053 220,074 3,296,487 Less current portion of project funds held by trustee under bond indenture agreement 8,448,618 7,565,723 S 120,997,237 $ 137,076,431 Investment income and gains for assets limited as to use, cash equivalents, and other investments are comprised of the following for the years ended June 30, 1999 and 1998: 1999 1998 Income: Interest income S 6,215,919 $ 6,774,307 Realized gains on sales of securities 6,812,579 7,227,649 S 13,028,498 $ 14,001,956 $ 811,271 $ 3,558,285 15 , 3. Property and Equipment Land Land improvements Buildings and improvements Fixed equipment Major movable equipment Minor equipment Capitalized leases Construction in progress Less accumulated depreciation and amortization Property and equipment, net 4. Pension Plans • Benefit obligation Fair value of plan assets (primarily marketable equity securities) Funded status Accrued benefit cost recognized in the Combined Balanced Sheets Weighted Average Assumptions: Discount rate Expected return on plan assets Rate of compensation increase Benefit cost Employer contributions Benefits paid Kapi'olani Health • Notes to Combined Financial Statements (continued) Property and equipment is summarised as follows: 1999 $ 15,900,255 1,183,852 164,577,657 10,272,632 91,329,311 1,954,860 2,988,956 4,877,616 293,085,139 (127,328,455) $ 165,756,684 1998 S 15,900,255 1,166,424 154,070,505 9,927,156 82,480,478 1,825,434 2,988,956 5,386,087 273,745,295 (111,517,080) S 162,228,215 June 30 1999 1998 $ 40,800,000 $ 36,438,000 41,971,000 39,468,000 $ 1,171,000 $ 3,030,000 $ 2,841,316 $ 2,631,847 7.50% 7.50% 8.00% 8.00% 5.00% 5.00% $ 1,988,000 $ 2,207,000 $ 1,778,000 $ 2,665,000 $ 1,315,000 $ 2,259,000 16 • • Kapi`olani Health Notes to Combined Financial Statements (continued) 5. Long -Term Debt and Note Payable to Bank Series 1996 Special Purpose Revenue Bonds (fart value of $55,000,000 less unamortized discount of $394,731 based on effective interest rates ranging from approximately 4.75% to 5.60%), interest payable semi- annually at rates ranging from 4.95% to 6.25%, principal payments in varying annual amounts ranging from $805,000 to $2,475,000 due July 1999 through 2019; 511,780,000 due July 2020, $12,520,000 due July 2021 Series 1993 Special Purpose Revenue Bonds (face value of $103,695,000 less unamortized discount of $1,863,736 based on effective interest rates ranging from approximately 4.00% to 7.00%), interest payable semi- annually at rates ranging from 5.20% to 6.40%, principal payments in varying annual amounts ranging from $1,770,000 to $3,300,000 due July 1999 through 2003; $19,780,000 due July 2008; $26,890,000 due July 2013; and $45,015,000 due July 2019 1999 1998 $ 54,605,269 S 54,587,120 101,831,264 103,421,045 Series 1991 Special Purpose Revenue Bonds, interest payable semi - annually at rates ranging from 6.80% to 7.00%, principal payments in varying annual amounts ranging from $860,000 to $990,000 due July 1999 through 2001 2,775,000 3,585,000 Carry forward 159,211,533 161,593,165 17 Carry forward Other Less current portion • Kapi`olani Health 5. Long -Term Debt and Note Payable to Bank (continued) Sr Note payable with interest at 12%; principal and interest payable in monthly installments ranging from $34,367 to $55,612 through July 2003 and the balance due on August 1, 2003 with the option to extend the maturity date to August 1, 2006; collateralized by all leasehold improvements, furniture, fixtures and equipment of KB's corporate offices with a carrying value of approximately $4,294,000 • Notes to Combined Financial Statements (continued) 1999 $ 159,211,533 1,990,130 873,418 162,075,081 (3,620,794) $ 158,454,287 1998 $ 161,593,165 2,188,982 927,167 164,709,314 (2,652,740) $ 162,056,574 The 1996, 1993, and 1991 Series Special Purpose Revenue Bonds are secured by a security interest in the gross receipts and pledged assets of the Obligated Group (ICH - parent company only, KMCWC, and KMCPM) as defined in the Master Indenture. The 1993 Bonds are subject to redemption on or after July 1, 2003, at redemption prices ranging from 100% to 102% of the principal amount of the bonds being redeemed. Series 1993 term bonds have mandatory sinking fund requirements effective July 1, 2004, payable in annual amounts ranging from $3,490,000 to $8,635,000. In January 1993, the Obligated Group made an advance refunding of $65,665,000 of the Series 1991 Special Purpose Revenue Bonds, by issuing Series 1993 Special Purpose Revenue Bonds and purchasing Government Obligations deposited with an escrow agent under an Escrow Agreement. The principal and interest on such Government Obligations provides sufficient funds to pay the principal and interest on the Series 1991 refunded Bonds. The outstanding principal balance on the refunded Bonds which were not included in the accompanying financial statements amounted to $65,665,000 as of both June 30, 1999 and 1998. 18 • • Kapi`olani Health Notes to Combined Financial Statements (continued) 5. Long -Term Debt and Note Payable to Bank (continued) Approximately $15,800,000 of the Series 1993 bonds (net of discount and issuance costs) were issued to finance renovation of and construction at KMCWC and purchase additional equipment (the "1993 KMCWC Project") as descr in the Indenture. KMCWC completed this project in August 1995. In April 1996, the Series 1996 Special Purpose Revenue Bonds of $55,000,000 were issued to assist the Obligated Group in financing or refinancing, or both, new construction and renovation and equipment purchases (the "1996 Kapi'olani Project") as described in the Indenture and Loan Agreement. KH completed this project in April 1999. As of June 30, 1999 the Obligated Group had an outstanding irrevocable standby letter of credit in the principal amount of $1,059,300, expiring July 1, 2001, to fund its Bond Reserve Fund. An annual commitment fee is payable ranging from $8,000 to $18,600 based upon the Obligated Group's long -term debt service coverage ratio. In addition, $8,448,618, included in current assets, is held by the Bond Trustee to fund current principal maturities and accrued interest payable. Long -term debt maturities for the years succeeding June 30, 1999 are: 2000 2001 2002 2003 2004 Thereafter Interest paid during the years ended June 30, 1999 and 1998 $10,232,738 and $12,877,902, respectively. The fair value of long -term debt as of June 30, 1999 and 1998 $171,775,070 and $181,891,332, respectively. $ 3,620,794 3,824,735 3,925,336 4,273,399 4,536,548 141,894,269 $ 1 62,075,081 was approximately was approximately 19 f 6. Leases • • Kapi`olani Health Notes to Combined Financial Statements (continued) 5. Long -Term Debt and Note Payable to Bank (continued) KH also has available a $10,000,000 unsecured revolving line of credit, expiring April 17, 2000. The interest rate on the line is a floating rate based on the bank's base rate. KH also has available a $1,000,000 irrevocable standby letter of credit to support the obligations of KHH as a State of Hawaii QUEST provider. The letter of credit is automatically renewable annually at the discretion of the bank. Leases on various types of office and storage space, office equipment and furniture are classified as operating leases. Future minimum lease payments under noncancelable operating leases are as follows: Year ending June 30 2000 $ 1,806,332 2001 1,389,621 2002 1,399,966 2003 1,501,779 2004 948,165 Thereafter 2,025,507 Total minimum lease payments $ 9,071,370 Rental expense paid during the years ended June 30, 1999 and 1998 was approximately $1,728,000 and $1,939,000, respectively. 7. Commitments and Contingencies Unemployment Claims KH is self - insured for substantially all of its unemployment claims. Claims for unemployment are insignificant and expensed when incurred. 20 • • Kapi'olani Health Notes to Combined Financial Statements (continued) 7. Commitments and Contingencies (continued) Workers' Compensation Claims KH is self- insured for workers' compensation claims (effective March 1994, KMCPM began self - insuring its workers compensation claims under KH's program). In lieu of a bond, the System has an outstanding letter of credit in favor of the State of Hawaii in the principal amount of $1,000,000, as required by self - insurance regulations of the State. The letter of credit is automatically renewable annually, but not beyond February 1, 2000. Claims administration is performed by a claims adjusting company. The claims adjusting company provides KH with estimated claims payments which KH accrues as its workers' compensation expense. In the opinion of management, adequate accruals have been provided for known and incurred but not reported workers' compensation claims. Medical Malpractice Insurance KH is insured for medical malpractice claims. Generally, medical malpractice insurance policies have included a shared deductible provision, which is currently 50% of the indemnity loss, up to a $25,000 maximum deductible per claim. Primary coverage is $1,000,000 (occurrence basis) with excess coverage of $19,000,000 for KMCWC and $9,000,000 for KMCPM (claims -made basis, with a seven year prepaid discovery period). Medical malpractice expense, including estimated accruals for amounts below the deductible provisions, totaled $2,263,000 and $2,056,000 for the years ended June 30, 1999 and 1998, respectively. Debt Service Forward Delivery Agreement KH has executed a debt service forward delivery agreement with a financial institution related to the semi- annual payments on the Series 1993 Special Purpose Revenue Bonds in which it received a payment of $1,727,000 in exchange for the potential interest earnings on the semi - annual payments placed in escrow prior to payment to the bond holders. If KH terminates the agreement, it will be obligated to reimburse the financial institution for its economic losses incurred as the result of the termination. Such losses will be determined at the date of termination. The financial institution has the right to terminate the agreement commencing in 2004. If it elects to do so, KH would be obligated to reimburse it up to a maximum of $2,650,000. Management has no present intention to terminate the agreement. 21 • Health Systems Affiliation Agreement Kapi'olani Health Notes to Combined Financial Statements (continued) 7. Commitments and Contingencies (continued) In March 1996, KH, Wilcox Health System ( "Wilcox) and The Qu: a's Health Systems ("QHS") entered into a Health Systems Affiliation Agreement ("Agreement') where KM and QHS agreed to make grants of $5,750,000 to Wilcox ($3,500,000 from KH and $2,250,000 from QHS) over the next four years provided that Wilcox satisfy certain financial and operational conditions. In November 1997, the agreement was amended where KH and QHS agreed to make additional grants of $1,000,000 to Wilcox ($500,000 from KH and $500,000 from QHS) in equal installments over the next four years beginning January 10, 1998 provided that Wilcox continues to satisfy the certain financial and operational conditions. The agreement was further amended in February 1999 to provide for a change in the timing of cash payments, but not the total amount to Wilcox. Under the amendments, KH will pay $63,079 per month through February 2002, provided that Wilcox satisfies certain financial and operational conditions. As of June 30, 1999, KH recorded an accrual of $949,000 for its obligation under the Agreement. Additionally, KH and QHS purchased the land under the Kauai Medical Group facilities from Wilcox for $1,085,000, which is included in the grant payments and split equally between KB and QHS. KH and QHS were each allowed to appoint one member to Wilcox's Board of Directors and one member to the Wilcox physician group's board of directors. Other During 1998, management became aware that certain billing errors had occurred in the Kapiolani Home Health Services and Kapiolani Extended Care subsidiaries. Settlement of approximately S4 million was made in August 1999 and has been accrued as a charge in the accompanying statement of operations. An affiliate of KB filed an initial application for tax exemption which was denied. As of June 30, 1999, the denial was on appeal. In July 1999, the tax exemption was granted by the Internal Revenue Service subject to agreed upon changes which include the closure of Partner's Health Hawaii in which one of Kap'iolani Health's affiliates is a partner. 22 Notes to Combined Financial Statements (continued) 8. Related Party Transactions • • Kapi'olani Health A joint venture investment of KH provides laundry services to KB. Charges for services totaled $964,000 and $944,000 in 1999 and 1998, respectively. Premiums paid to Pacific Health Care, a 20% owned affiliate totaled $349,000 in 1998. No premiums were paid to Pacific Health Care in 1999. KH paid approximately $6,634,000 and $6,422,000 for laboratory services provided by a joint venture in 1999 and 1998, respectively. Payments made to Partners Health Hawai'i for management fees totaled $709,000 and $829,000 in 1999 and 1998, respectively. Notes receivable from an affiliate totaled $375,000 as of June 30, 1999 and 1998. 9. Restructuring Charges In view of current operating trends and future projections, KH has decided to focus on its primary lines of business, operating hospitals and operating a health plan. Accordingly, management decided to dispose of or discontinue certain operations which it deemed outside of the focus of operating KMCWC, KMCPM and KHH. Management implemented a plan to exit the Home Health/Extended Care businesses, the physicians' practice management business and the development of a new physician's office and clinic site in Leeward Oahu. This plan was approved by management and the Board of Directors in the fourth quarter of the year ended June 30, 1998. In addition, a program to increase operating efficiency and reduce expenses was approved in the fourth quarter of the year ended June 30, 1998. Costs for termination benefits, lease obligations and fixed assets related to the restructuring amounted to approximately $3,000,000 in 1998. 23 , • • Kapi`olani Health Notes to Combined Financial Statements (continued) 10. Subsequent Event - Reorganization of Health Insurance Business In October 1999, KH and KHH entered into a Reorganization Agreement with Hawaii Medical Services Association, ( "HMSA'). Under the Agreement, effective November 1, 1999 substantially all of Mill's commercial health insurance contracts will be assigned to HMSA. The assigned contracts expire at various dates through January 2001, the majority expiring in mid -2000. KH and KHH remain contingently liable for aggregate losses on the assigned contracts. No consideration will be exchanged in connection with the assignment. KHH will retain its Medicaid (QUEST) business, which will be operated under a third party administration agreement with HMSA. The QUEST contract between KHH and the State of Hawaii expires June 30, 2002. KHH will continue to operate the State Health Fund contract, which expires in June 2001. Management's assessment of the costs of the reorganization through January 2001 is approximately $2.4 million, which will be accrued as a charge in the fiscal year ending June 30, 2000. 11. Impact of Year 2000 (Unaudited) General Description of the Year 2000 Issue and the Nature and Effects of the Year 2000 on Information Technology (IT) and Non -IT Systems The Year 2000 Issue is the result of computer programs being written using two digits rather than four to define the applicable yew. In any of KH's computer programs, date - sensitive software or embedded chips may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations, including, among other things, a temporary inability to process transactions, bill for services, provide patient care, or engage in similar normal activities. KH determined that it will be required to modify or replace significant portions of its software and certain hardware so that those systems will properly utilize dates beyond December 31, 1999. KH presently believes that with modifications or replacements of existing software and certain hardware, the Year 2000 Issue has been mitigated. 24 • • Kapi`olani Health Notes to Combined Financial Statements (continued) 11. Impact of Year 2000 (Unaudited) (continued) General Description of the Year 2000 Issue and the Nature and Effects of the Year 2000 on Information Technology (IT) and Non -IT Systems (continued) KH's plan to resolve the Year 2000 Issue involves the following four phases: assessment, remediation, testing, and implementation. To date, KH has fully completed its assessment of all systems that could be significantly affected by the Year 2000. The completed assessment indicated that most of KH's significant information technology systems could be affected, including the general ledger, patient accounting, clinical, medical records, and internal communication systems. That assessment also indicated that software and hardware (embedded chips) used in medical equipment also are at risk. In addition, KH has gathered information about the Year 2000 compliance status of its significant suppliers and subcontractors and continues to monitor their compliance. Status of Progress in Becoming Year 2000 Compliant Overall, KH is approximately 92% complete with all activities to remediate, test and implement compliant versions of its IT dependent systems, including the preparation and testing of contingency plans. Nature and Level of Importance of Third Parties and their Exposure to the Year 2000 KH is 100% complete with the identification of non -IT dependent business partners. KH has identified approximately 60 mission critical business partners whose Year 2000 compliance or non - compliance could materially impact KH's ability to operate. These range from patient care affecting clinical partners to public utilities, insurance payers, financial institutions, and providers of governmental services. KH is monitoring the efforts of these partners to achieve Year 2000 compliance which in nearly all cases, appear to be substantial. In cases where certain partners do not appear to be making substantial progress, KR has developed contingency plans so that the other party's failure to comply will not disrupt KB's operations. The process of completing and testing the contingency plans will continue through the remainder of 1999. 25 Costs of the Year 2000 Effort Kapi`olani Health Notes to Combined Financial Statements (continued) 11. Impact of Year 2000 (Unaudited) (continued) KH is utilizing both intematand cxiernai I. wu,,,ws to reprogram, or replace, test, and implement the software and operating equipment for Year 2000 modifications and to work with mission critical business partners to assess and if necessary mitigate their compliance. The total cost of the Year 2000 project is estimated at $6,500,000 and is being funded through operating cash flows. To date, KH has incurred approximately $5,250,000 ($4,900,000 expensed and $350,000 capitalized for new systems and equipment), related to all phases of the Year 2000 project. Of the total remaining project costs, virtually all will be expensed, approximately half the remaining amount being budgeted for retention incentive to be earned in the fiscal year ending June 30, 2000. 26 • Adorers are refry ::. ° C or A•.r.r. ta:.1. LA: EU: 78 324 Purpose: Charitable Accounting Period.Ending: June 30 Inte Revenue Service Gate -to .emr reeer to- 3. Jones FEB 1 7 1978 , L -178, Code CIE0G -2:5: Determination Section (213) 6SS - 4553 Fapiolani- Children's Medical Center 1319 Punahou Street Honolulu, Hawaii- 96826 Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption. we have determined you are exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code. We have further determined you are not a private foundation within the meaning of section 509(a) of the Code. because you are an organization described in, section 170(b)(1)(A)(iii) and 509(a)(1). You are not liable Tor social security (FICA) taxes unless you file a waiver of exemption certificate as provided in the Federal Insurance Contributions Act. You are not liable for the taxes imposed under the Federal Unemployment Tax Act (FUTA). Since you are not a private foundation, you are not subject to • the excise taxes under Chapter 42 of the Code. However, you are not automatically exempt from other Federal excise taxes. If you have any questions about excise, employment. or other Federal taxes, please let 'an ;now. Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises. transfers. or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055. 2106, and 2522 of the Code. If your purposes. character, or method of operation is changed. please let us know so we can consider the effect of the change on your exempt status. Also, you should inform us of all changes in your gaze or address. (Overt Form L —:78 (Rev. E-73) _� 4 /atin etc rm more .nr. :: you: g. c re.e. etch year :_re no �� �* i. you are required to file '- 991. net_.:, of Organization Exempt Income Tax. by the litz day of the fifth month after the end of your annual accounting period. The law imposes a penalty of S10 a day, up to a maxi`•.,a. of 55.000, for failure to file a return on time. You are no: required to file Federal income tax returns unless you are subject to the tax on unrelated business income under section ;,_'_ of the Code. If you are subject to.this tax, you must file an income tax return on Fore 290—T. Zr. this letter we are not determining whether any of your present or proposed activities are unrelated trade or business as defined in section 513 of the Code. You need an employer identification number even if you have no eloyees. If an employer identification number was not entered on your application. a number will be assigned to you and you will be advised of it. Please use that number on all returns you file and in . all correspondence with the Internal Revenue Service. Please keep this determination letter in your permanent records. cc: William A. HcDonald cl Sincerely yours. District Director Form L —i78 (Rev. Issued By: Truck Insurance Exchange, Los Angeles, CA Named Kapiolani Medical Center for Women and Children Insured Address 1319 Punahou Street Honolulu, Hawaii 96826 This certificate or verification of Insurance is not an insurance policy and does not amend, extend, or alter the coverage afforded by the policy referred to above. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policy is subject to all the terms, exclusions, and conditions of such policy. Insured has a Single Limit as indicated below. SINGLE LIMIT $5 million Each Occurrence Claims Made 0 Comprehensive Healthcare Professional Liability, General Liability, Bodily Injury & Property Damage Liability 'Modified Occurrence 0 "Occurrence DESCRIPTION OF OPERATIONSNEHICLES /SPECIAL ITEMS /REMARKS: Evidence of Healthcare General and Professional Liability coverage relating to Kapiolani Child Protection Center - West Hawaii Branch's West Hawaii Counseling and Supportive Living Project. 1170 -1066 Policy Number Notice of cancellation of the coverage automatically terminates coverage. After cancellation this certificate becomes void and without effect. A breakdown of the limits will be provided upon demand. Effective Date Place Other Interest January 6, 2000 October 1, 1999 Los Angeles, CA County of Hawaii, Department of Finance 45 Aupuni Street, Room 118 Hilo, Hawaii 96720 Continuous until canceled DATE TYPED Authorized Representative FARMERS INSURANCE GROUP OF COMPANIES CERTIFICATE OF INSURANCE • • KAPI'OLANI MEDICAL CENTER FOR WOMEN AND CHILDREN Certification of Assistant Secretary I, Betty Kaneshiro, Assistant Secretary of KAPI'OLANI MEDICAL CENTER FOR WOMEN AND CHILDREN, a nonprofit corporation duly organized and existing under and by virtue of the laws of the State of Hawaii, do hereby certify that the Charter of Incorporation attached hereto is a full, true and correct copy of the Charter of Incorporation of this Corporation as amended through July 7, 1995, and that since that date said Charter of Incorporation has not been modified, amended or rescinded and continues in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of said KAPFOLANI MEDICAL CENTER FOR WOMEN AND CHILDREN this 7 day of January, 2000. Betty K eshiro Assistant Secretary G 2� • As Adopted May 18, 1976 and • amended through July 7, 1995. • KAPI'OLANI MEDICAL CENTER for Women & Children CHARTER OF INCORPORATION ARTICLE I Corporate Name The name of the Corporation is KAPI`OLANI MEDICAL CENTER FOR WOMEN AND CHILDREN. ARTICLE II Location of the Corporation The location of the Corporation and the address of its initial office is 1319 Punahou Street, Honolulu, Hawaii 96826. ARTICLE III Corporate Purposes Section 3.1 Purposes. The corporation is organized exclusively to operate and maintain a hospital and medical center primarily to provide comprehensive health care services and resources to women and children and to operate exclusively for charitable, educational and scientific purposes, within the meaning of Section 501(c)(3) of the Internal Revenue Code, including for such purposes, the making of distributions to organizations that qualify as tax- exempt organizations under Section 501(c)(3) of the Internal Revenue Code of 1954 (or any future corresponding provisions). Section 3.2 Restrictions. No part of the assets or earnings of the Corporation shall inure to the benefit of any individual. The Corporation shall not participate in or intervene (including the publication or distribution of statements) in any political campaign on behalf of any candidate for public office. Notwithstanding any other provision of this Charter, the Corporation shall not carry on any activities not permitted to be carried on: (i) By a corporation exempt from Federal Income Tax under Section 501(c)(3) of the Internal Revenue Code of 1954 (or the corresponding provi- sion of any future United States Internal Revenue Law); or (ii) By a corporation, contributions to which are deductible under Section 170(c)(2) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue Law). • • The Corporation shall have and possess all the powers permitted to nonprofit corpora- tions under the laws of the State of Hawaii. KMCWC Charter of Incorporation Page 2 ARTICLE IV Corporate Powers ARTICLE V Corporate Life The duration of the Corporation shall be perpetual. ARTICLE VI Trustees and Officers Section 6.1 Board of Trustees. There shall be a Board of Trustees elected as provided in the Bylaws who shall number 20 at the formation of the Corporation and within three years thereafter shall be reduced to a number not less than eleven nor more than seven- teen persons. The Board of Trustees shall have and may exercise all the powers of the Corpo- ration except as otherwise provided by law, this Charter or the Bylaws. Section 6.2 Officers. The officers of the Corporation shall be a chairman of the board, a president, a secretary and a treasurer. The Corporation may have such additional officers as determined in accordance with the Bylaws. The officers shall have the powers, perform the duties and be appointed in the manner set forth in the Bylaws. Any person may hold two or more offices of the Corporation unless such practice is prohibited by the Bylaws. ARTICLE VII Liability and Indemnification of Officers, Directors. Employees and Agents Section 7.1 No Liability to Corporation. No trustee, officer, employee or other agent of the Corporation and no person serving at the request of the Corporation as a trustee, officer, employee or other agent of another corporation, partnership, joint venture, trust or • • Section 7.2 Indemnity. • • other enterprise and no heir, or personal representative of any such person shall be liable to the Corporation for any loss or damage suffered by it on account of an action or omission by such person as a trustee, officer, employee or other agent if he/she acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of this Corporation, unless with respect to an action or suit by or in the right of the Corporation to procure a judgment in its favor such person shall have been adjudged to be liable for negligence or misconduct in the performance of his/her duty to this Corporation. (1) The Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Corporation) by reason of the fact that he/she is or was a trustee, officer, employee or other agent of the Corporation or is or was serving at the request of the Corporation as a trustee, officer, employee or other agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him/her in connection with such action, suit or proceeding if he/she acted in good faith and in a manner he/she reasonably believed to be in or not opposed to the best interests of the Corporation, or, with respect to any criminal action or proceeding, had no reasonable cause to believe his/her conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he/she reasonably believed to be in or not opposed to the best interests of this Corporation or, with respect to any criminal action or proceeding, had reasonable cause to believe that his/her conduct was unlawful. (2) The Corporation shall indemnify each person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that such person is or was a trustee, officer, employee or agent of the Corporation or is or was serving at the request of the Corporation as a trustee, officer, employee or agent of another corporation, partnership, joint venture, trust or other entity, against expenses (including attorneys' fees) actually and reasonably incurred by him/her in connection with the defense or settlement of such action or suit if he/she acted in good faith and in a manner he/she reasonably believed to be in or not opposed to the best interests of this Corporation, except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his/her duty to this Corporation unless and KMCWC Charter of incorporation Page 3 only to the extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper. (3) To the extent that a trustee, officer, employee or other agent of the Corporation or of any division of the Corporation, or a person serving at the request of the Corporation as a trustee, officer, employee or agent of another corporation, partnership, joint venture, trust or other entity, has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in paragraphs (1) and (2) of this section, or in defense of any claim, issue or matter therein, he/she shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by him/her in connection therewith. (4) Any indemnification under paragraphs (1) and (2) of this section (unless ordered by a court) shall be made by the Corporation only if authorized in the specific case upon a determination that indemnification of the trustee, officer, employee or agent is proper in the circumstances because he /she has met the applicable standard of conduct set forth in paragraphs (1) and (2). Such determination may be made: (i) by the Board of Trustees by a majority vote of a quorum consisting of directors who were not parties to such action, suit or proceedings; (ii) if such a quorum is not obtainable, or, even if obtainable and a quorum of disinterested directors so directs, by independent legal counsel in a written opinion to the Corporation; (iii) if a quorum of disinterested trustees so directs, by a majority vote of the members; or (5) Expenses incurred in defending a civil or criminal action, suit or proceeding may be paid by the Corporation in advance of the fmal disposition of such action, suit or proceeding as authorized by the Board of Trustees in a particular case upon receipt of an undertaking by or on behalf of the trustee, officer, employee or agent to repay such amount unless it shall ultimately be KMCWC Charter of Incorporation Page 4 • • (iv) by the court in which such proceeding is or was pending upon application made by the Corporation or the agent or the attorney or other person rendering services in connection with the defense, whether or not such application by the agent, attorney or other person is opposed by the Corporation. 4 • • determined that he/she is entitled to be indemnified by the Corporation as authorized in this article. (6) The indemnification provided by this article shall not be deemed exclusive of any other rights to which those indemnified may be entitled and shall continue as to a person who has ceased to be a trustee, officer, employee or agent and shall inure to the benefit of the heirs and personal representatives of any such person. (7) The Corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a trustee, officer, employee or other agent of the Corporation or is or was serving at the request of the Corporation as a trustee, officer, employee or other agent of another corporation, partnership, joint venture, trust or other enterprise, against any liability asserted against him/her and incurred by him/her in any such capacity or arising out of his/her status as such, whether or not the Corporation would have the power to indemnify him/her against such liability under the provisions of this Article. ARTICLE VIII Membership The sole voting member of the Corporation shall be Kapiolani Health [formerly known as Kapiolani Health Care System], a Hawaii nonprofit corporation. The sole voting member of the Corporation shall have such rights and powers as are provided in the Charter of Incorporation, the Bylaws and the laws of the State of Hawaii including, without limitation of the generality of the foregoing, the exclusive power. (a) to elect the trustees of the Corporation and to remove any of the trustees of the Corporation from office; and (b) to vote on all matters where the vote of members with voting rights is required under the Charter of Incorporation, the Bylaws, or the laws of the State of Hawaii. The Corporation may provide in the Bylaws for one or more classes of supporting, life, honorary, or other non -voting members, who shall have the rights set forth in the Bylaws but who shall not be entitled to vote or to have any voice in the management of corporate affairs. KMCWC Charter of Incorporation Page 5 The Corporation may provide in the Bylaws for special articles of governance for one or more divisions, such as the Auxiliary and the Medical Staff; and the Bylaws may authorize such divisions to adopt their own. bylaws, rules and regulations, subject to approval of the Board of Trustees. The Corporation is not organized for profit and it will not issue any stock, and no part of its assets, income, or earnings shall be distributed to its trustees or officers, except for services actually rendered to the Corporation, except that the Corporation shall be empowered to make payments and distributions in furtherance of the exempt purposes for which it was formed. KMCWC Charter of Incorporanon Page 6 • • ARTICLE IX Divisions ARTICLE X Non- Profit ARTICLE XI Corporate Liability The property of the Corporation shall alone be liable in law for the payment of the debts and liabilities of the Corporation. ARTICLE XII Corporate Dissolution If the Corporation shall cease to exist or shall be dissolved, all property and assets of the Corporation of every kind, after payment of its just debts, shall be distributed to Kapi`olani Health [formerly known as Kapiolani Health Care System], Kapi`olani Health Foundation [formerly known as Kapiolani Medical Center Foundation for Women and Children] or either of them, or to any other health care organization which is then affiliated with either of them, provided the recipient is then a tax - exempt organization described in Section 501(c)(3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue law), but if Kapi`olani Health [formerly known as Kapiolani Health Care System] or Kapi`olani Health Foundation [formerly known as Kapiolani Medical Center Foundation for Women and Children] at that time is no longer such a tax - exempt organization, then the remaining assets shall be distributed, for the specific purposes of prenatal and postnatal health care for women and children, only to one or more public agencies, organizations, corporations, trusts or foundations organized and operated exclusively for charitable, scientific, educational or literary purposes, no part of whose assets, income or earnings may be used for dividends or otherwise withdrawn or distributed to or inure to the benefit of any private shareholder or individual and the activities of which do not • • include participation or intervention (including the publication or distribution of statements) in any political campaign on behalf of any candidate for public office. In no event shall any distribution be made to any organization unless it qualifies as a tax- exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue Law) with purposes similar or related to those of the Corporation. To the extent economically and socially feasible, any such distributions shall be allocated equally between medical care for women and medical care for children; and to the extent that any restricted funds are distributed for one of such purposes, an equivalent amount of unrestricted funds shall be distributed for the other purposes, so that the total distribution shall be approximately equivalent. ARTICLE XIII Thyjm The power to adopt, alter, amend or repeal the Bylaws or adopt new Bylaws shall be vested in the Board of Trustees subject to repeal or change by the action of the members. ARTICLE XIV Charter of Incorporation This Charter shall be subject to amendment from time to time in the manner set forth by law, and the Corporation shall be subject to all general laws now in force or hereafter enacted with regard to corporations of this nature. KMCWC C of Incorporation Page 7 • • KAPI'OLANI MEDICAL CENTER FOR WOMEN AND CHILDREN Certification of Assistant Secretary I, Betty Kaneshiro, Assistant Secretary of KAPI'OLANI MEDICAL CENTER FOR WOMEN AND CHILDREN, a nonprofit corporation duly organized and existing under and by virtue of the laws of the State of Hawaii, do hereby certify that the Bylaws attached hereto are a full, true and correct copy of the Bylaws as amended through October 15, 1997, and that since that date said Bylaws have not been modified, amended or rescinded and continue in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of said KAPI'OLANI MEDICAL CENTER FOR WOMEN AND CHILDREN this 7 day of January, 2000. Assistant Secretary As Adopted May 18, 1976 and amended through October 15, 1997. • • KAPI'OLANI MEDICAL CENTER for Women & Children BYLAWS ARTICLE I Activities The activities of Kapi`olani Medical Center for Women and Children (the "Corporation ") shall be those necessary and appropriate to accomplish the purposes of the Corporation as stated in the Charter of Incorporation of the Corporation (the "Charter "). ARTICLE II Membership and Voting Section 2.1 Voting Member. The sole voting member of the Corporation shall be Kapi`olani Health [formerly known as Kapiolani Health Care System], a Hawaii nonprofit corporation. Section 2.2 Suunortine. Life and Honorary Members. Any individual or corporation may be a supporting, life or honorary member of the Corporation by vote of the Trustees at any regular, special or annual meeting, and who pays such fees and dues as may be prescribed by the Board of Trustees, Supporting, life and honorary members shall be entitled to the privileges prescribed by the Board of Trustees but shall not be entitled to vote or to have any voice in the management of corporate affairs. ARTICLE III Meeting of Members Section 3.1 Annual Meeting. The annual meeting of the members shall be held each year at such time and place as the Board of Trustees determines for the purposes of electing trustees and transacting such other business as may come before the meeting. The voting members may dispense with the annual meeting by unanimous written consent. Section 3.2 Special Meetings. Special meetings of the members for any purpose or purposes may be held at any time upon the call of the President or any three trustees or upon the written request of the majority of the voting power of the membership of the Corporation, Section 4.1 Number and Oualification of Trustees. There shall be not less than eleven nor more than seventeen trustees. The number of trustees for any following year shall be determined by the voting membership at the annual meeting. The President of the Corporation and the Chief of Staff shall be trustees. The remaining trustees shall be elected by the membership at the annual meeting to hold office for the term elected and thereafter until their successors are duly elected and qualified, provided that additional trustees may be elected at any special meeting of the membership called for that purpose during the year to fill any unfilled positions. • • Section 3.3 Place of Meeting. The Board of Trustees may designate any place for any annual or special meeting of the members. If no designation is made, the place of meeting shall be the principal office of the Corporation. Section 3.4 Notice of Meetings. Notice of all meetings, annual or special, stating the place, day and hour of the meeting and whether it is annual or special, and in case of a special meeting stating the purpose or purposes thereof, shall be given personally or by mail. If by mail, such notice shall be postage prepaid to each member.at his address as it appears on the membership roll of the Corporation at least ten days before the meeting. Section 3.5 Adjourned Meetings and Notice Thereof. Any meeting of the members, annual or special, whether or not a quorum is present, may be adjourned from time to time by the vote of a majority of the voting members present, but in the absence of a quorum no other business may be transacted at any such meeting. When any members' meeting, either annual or special, is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting; otherwise it shall not be necessary to give any notice of an adjourned meeting other than by announcement at the meeting at which the adjournment is taken. Section 3.6 Voting. At all meetings of members, every voting member entitled to vote shall have the right to vote in person or by written proxy, Section 3.7 Ouorum. A majority of the voting members constitutes a quorum for the transaction of business and any decision of a majority of the quorum of voting members shall be valid and binding except as otherwise specifically provided with respect to particular matters by the Charter, these Bylaws or by applicable provisions of law. Section 4.2 Term of Membership. The initial term of each Trustee shall be for a period of one year and thereafter the time shall be three years, except that shorter terms may be set so that terms of approximately one -third of the total number constituting the Board shall expire each year. The term of each President and Chief of Staff as Trustees shall continue so long as each occupies that position. Any member of the Board may be removed KMCWC Bylaws Page 2 ARTICLE IV Board of Trustees • • from office upon the affirmative vote of not less than three- fourths of the Board. No trustee may serve for more than three consecutive terms. Section 4.3. Schedule and Notice of Meetings. (a) Organization Meeting of Board. A meeting of the Board elected at an annual meeting of the members shall be held at the place of such annual meeting and immediately thereafter and no notice thereof shall be necessary. In the event that such meeting of the Board shall not be held, a special meeting shall be called to be held as soon as practicable thereafter. The purpose of this meeting is to elect officers of the Corporation for the coming year. (b) Regular Meetings. Regular meetings of the Board may be held at least quarter annually at the place and time established by the trustees and when any such meeting or meetings is established no further notice thereof shall be necessary. At regular meetings, the Board, subject to any requirements of law and of the Charter and these Bylaws, may transact any general business brought before the meeting and take any corporate action. (c) Snecial Meetings. Special meetings of the Board may be called at any time by the Chairman of the Board, the President or by any three trustees. (d) Notice of Meetings of the Board. Except as otherwise provided herein, the Secretary shall give notice of each meeting of the Board, either orally or in writing by mail or delivery not less than one day before the meeting unless otherwise prescribed by the Board. The failure of the Secretary to give notice or the non - receipt of notice by any trustee shall not invalidate the proceedings of any meeting of the Board at which a quorum of the trustees is present Section 4.4 Ouorum for the Board. A majority of the Board constitutes a quorum for transaction of business. Section 4.5 Vacancies on the Board. Should a vacancy occur on the Board, the remaining members of the Board may, by a majority vote, elect a successor to fill the vacancy to serve for the unexpired term. Section 4.6 Attendance at Meetings of the Board. If any member of the Board is absent from three consecutive meetings or four or more meetings per annum, without leave of the Board for due cause, his office may be declared vacant and his removal from the Board and from his office shall be completed when such fact is noted in the minutes of the Board by order of the Trustees. In any such case or procedure, the Board shall fill such vacancy until the next annual meeting. KMCWC Bylaws Page 3 Section 4.7 Powers of the Board. All powers and authority of the Corporation shall be vested in and be exercised by the Board except as limited by law, the Charter or these Bylaws: such powers including the following: KMCWC Bylaws Page 4 • • (a) To acquire and dispose of property; (b) To elect officers and appoint agents or employees of the Corporation and to confer upon and to delegate to them by power of attorney or otherwise such power and authority as it determines; (c) To determine all matters affecting finances; to fix the salaries or compensation of the agents and employees of the Corporation, and in its discretion require security of any of them for the faithful performance of any of their duties; (d) To make rules and regulations not inconsistent with law or the Charter of Incorporation or these Bylaws for the operation of the medical center; (e) To create committees of the Board and to designate as members such persons as it determines and to confer upon such committees such powers and authority as by resolution set forth for carrying on or exercising the powers of the Corporation; (f) To remove or suspend any officers. Any officer elected by the Trustees may be removed with or without cause by the vote of a majority of the Trustees. (g) To incur indebtedness as necessary, and as security for the payment of obligations of the Corporation, to assign, set over, transfer, mortgage, pledge or hypothecate any and all of its real, personal, or other property, and to execute or endorse in the name and on behalf of the Corporation such note or notes or other obligations as the Board deems advisable. (h) Generally, to do any lawful act necessary or proper to carry into effect the powers and purposes of the Corporation. ARTICLE V Officers Section 5.1 Principal Officers. The principal officers of the Corporation shall be a Chairman of the Board, a Vice - Chairman, a President, a Secretary and a Treasurer. The officers shall be elected annually by the Board at the organization meeting or the first meeting thereof after the annual or special meetings of the members at which the Board is elected, and shall hold office for one year and thereafter until their successors are duly elected and qualified. The offices of the Secretary and Treasurer may be held by the same person. The Treasurer may be a corporation. The Chairman of the Board and any Vice Chairman or Vice Chairmen, if elected, and the President shall be Trustees. No other officer need be a Trustee. Section 5.2 Chairman of the Board. The Chairman of the Board shall have general supervision over the Corporation's business and affairs and see to the proper observance and enforcement of the Charter and these Bylaws and the rules and regulations, actions and orders of the Board. The Chairman shall call such meetings of the members of the Corporation and of the Board as are herein provided for and such other meetings as shall seem proper to the Chairman. Section 5.3 Vice Chairman of the Board. The Board at any meeting, may elect one or more Vice Chairmen of the Board. In the absence or disability of the Chairman of the Board, the Vice Chairmen in order of their rank as fixed by the Board, shall preside at any meeting of the members or the Board. Section 5.4 President. The President shall have such duties and responsibilities as the Board shall prescribe from time to time. Section 5.5 Vice President. The Board at any meeting, may elect one or more Vice Presidents. In the absence or disability of the President, the Vice Presidents, in order of their rank as fixed by the Board, or if not ranked, the Vice President designated by the Board of Directors, shall perform all duties of the President, and when so acting shall have all power of, and be subject to all restrictions upon, the President; the Vice Presidents shall have such other powers and perform such other duties from time to time prescribed for them respectively by the Board or the Bylaws. Section 5.6 Secretary. The Secretary shall give the notices of all meetings of the members of the Corporation and the Board and shall keep the minutes of such meetings. The Secretary shall furnish the Treasurer with the names of all persons elected to membership in the Corporation, keep the membership roll of the Corporation. The Secretary shall perform all other duties assigned by the Board. Section 5.7 Treasurer and Assistant Treasurer. The treasurer shall review the financial status of the Corporation and recommend fiscal policies to the President, chairman of the board and the Board of Trustees. The treasurer may be a corporation. The treasurer shall perform all other duties assigned by the chairman of the board or the Board of Trustees. The assistant treasurer or assistant treasurers, if elected, shall, in the order designated by the chairman of the board of the Board of Trustees, perform all the duties and exercise all the powers of the treasurer during the absence or disability of the treasurer or whenever the office is vacant and shall perform all the duties assigned by the chairman of the board or the Board of Trustees. Section 5.8 Subordinate Officers. The Board may appoint subordinate officers who shall hold their positions at the pleasure of the Board, and who shall have the powers and KMCWC Bylaws Page 5 • • duties determined by the Board. The Number and title of subordinate officers may be changed from time to time and subordinate officers may be appointed from time to time at any meeting or meetings of the Board. The authority to fix the powers and duties of subordinate officers may be delegated by the Board to any officer or officers of the Corporation. Any officer of the Corporation may also be a subordinate officer. Subordinate officers need not be Trustees. The Board shall appoint a Chief Executive Officer, who need not be an officer of the Corporation, and who shall have such duties and responsibilities as the Board shall prescribe from time to time. All checks and other orders for payment of money, drafts, notes, bonds, acceptances, contracts, and all other instruments shall be signed by such person or persons designated by general or special resolution of the Board, and, in the absence of any such general or special resolution applicable to any such instrument, then the instrument shall be signed by the Chairman of the Board, any Vice Chairman or the President and by the Treasurer or the Secretary. KMCWC Bylaws Page 6 ARTICLE VI Chief Executive Officer ARTICLE VII Execution of Instruments ARTICLE VIII Committees of the Board Section 8.1 Standing Committees. The Corporation shall have the following standing committees: Executive, Finance, Nominating and Corporate Bylaws, and such other standing committees as the Board may authorize. The Chairman and members of the standing committees of the Board shall be appointed by the Chairman of the Board and shall serve for at least a one -year term, which may be extended by the Chairman of the Board. There shall be such special committees as may be appointed by the Chairman of the Board from time to time. At a committee meeting, a quorum shall be a majority of committee members. Activities of the committees may be recorded in minutes. Section 8.2 Executive Committee. The Executive Committee shall consist of the Chairman, the President, and at least one additional trustee appointed by the Board. The Executive Committee shall have the power to transact all regular business of the Corporation during the period between the meetings of the Board, subject to any limitations imposed by the Board. Section 8.3 Finance Committee. The Finance Committee shall consist of at least three Trustees, The duties of the committee include the following: • • (a) Responsibility for supervising the management of all endowment and trust funds of the medical center; (b) Review of and approval of the capital and annual operating budgets of the Corporation. (c) Review of the financial feasibility of corporate projects, acts and undertakings referred to it by the Board and making recommendations thereon; (d) Review and evaluate the findings and final reports of the auditors and based thereon making recommendations to the Board concerning financial operation of, and services required by and provided to the Corporation; (e) Performing such other duties related to fiscal matters as maybe assigned to it by the Board or the Chairman. Section 8.4 Nominating Committee. The Nominating Committee shall be appointed each year by the Chairman of the Board. This committee shall be composed of at least three members of the Board. The Nominating Committee shall have the duty of nominating at the annual meeting of the Corporation, and at other meetings when vacancies are to be filled, candidates to be elected officers and members of the Board. Section 8.5 Corporate Bylaws Committee. The Corporate Bylaws Committee shall be appointed each year by the Chairman of the Board. The Committee shall review annually the Bylaws, organization and general policies of the Corporation and shall submit to the Board a report based on its review, including any recommendations for changes. ARTICLE IX Auxiliary There shall be an auxiliary of the Corporation, to be known as the Kapi`olani Medical Center for Women and Children Auxiliary. The purpose of the auxiliary shall be to assist the medical center by voluntary services, promotion of projects and solicitation of donations and funds for the benefit of the medical center. The Auxiliary shall adopt bylaws to govern its activities and such bylaws shall be submitted to the Board for approval. ARTICLE X Medical Staff Section 10.1 Organization and Bylaws. There shall be an organized medical staff that has overall responsibility for the quality of all medical care provided to patients, and for the ethical conduct and professional practices of its members as well as for accounting ICMCWC Bylaws Page 7 therefor to the Board. The medical staff shall develop and adopt bylaws, rules and regulations to establish a framework for self - government and a means of accountability to the Board. These bylaws, rules and regulations shall be submitted to the Board for approval and shall contain procedures for satisfying the requirements of due process in conducting hearings and appeals. KMCWC Bylaws Page 8 • • Section 10.2 Medical Executive Committee. (a) The Medical Executive Committee shall be the executive committee of the medical staff. The chairman of the Medical Executive Committee is the Chief of Staff and is an ex- officio member of the Board. (b) The Medical Executive Committee shall act in an advisory capacity to the Board when called upon, approve or disapprove the character of medical work done in the medical center, and if necessary, limit the activities of the members of the active and visiting staff, provided no such member's activities shall be limited unless and until said member has had the privilege of appearing before and being heard by the Medical Executive Committee. (c) The Medical Executive Committee shall advise the Board and make such recommendations with respect to all grievances, complaints, suggestions and criticisms regarding medical practice and ethics that are brought to its attention. Section 10.3 Appointments. (a) The Board shall approve, upon the advice of the Chief of Staff of the Medical Executive Committee of the medical staff, the persons entitled to Medical or Dental Staff membership as evidenced by their individual qualifications and licensed by the State of Hawaii subsequently to engage in medical practice within the medical center and the conditions and standards under which such practice shall be conducted. (b) All initial appointments to the medical staff shall be for a period of one year pursuant to formal reapplication procedures. Reappointments shall be for two years each. (c) When an appointment is not to be renewed, or when privileges have been or are proposed to be reduced, altered, suspended, or terminated, the staff member shall be afforded the opportunity of due process as outlined in the medical staff bylaws. • • Section 10.4 Physicians and Dentists Employed by the Medical Center. (a) Physicians and dentists employed by the Corporation in a purely administrative capacity with no clinical duties are subject to the regular personnel policies of the hospital and their contract or other terms of employment, and need not be members of the medical staff. (b) Physicians and dentists employed by the Corporation, either full or part-time, whose duties are medico - administrative in nature and include clinical responsibilities or functions with the medical staff involving their professional capability as physicians or dentists, must be members of the medical staff, achieving this status by the same procedure provided for other medical staff members. Medical staff membership and clinical privileges may or may not be made contingent on continued employment. (c) Termination of employment of a physician or dentist in a medico - administrative position shall be subject to review, and a hearing, if requested, by a joint conference of Board members and representatives elected by the voting members of the medical staff. (d) When the reason for the action is determined to involve the individual's medical competence, which includes competence to supervise the professional activities of practitioners under his or her direction, the medical staff shall provide for a review of the decision, including the right to a hearing if requested by the individual, and a recommendation to the Board on the action proposed. (e) When the reason for the action is determined by the joint conference to be purely administrative in nature and does not involve the individual's medical competence, the Board shall follow its usual personnel policies, or the terms of the contract, if there be one. Section 10.5 Responsibilities of the Medical Staff. The medical staff shall have the authority and responsibility to establish and maintain the following: (a) To be a member of the medical staff a doctor shall qualify for the medical privileges, and exercise the privileges granted, consistent with the requirements of these bylaws and the bylaws, rules and regulation . of the medical staff. (b) The medical staff shall be organized to provide a framework for effective performance by the members of their duties and functions. The organization shall be in categories set forth in the medical staff bylaws, which shall provide for the election of officers, executive committee and service chiefs. The service chiefs may serve for a period of two years and may be re- elected subject to the directives of the medical staff and its bylaws. ICMCWC Bylaws Page 9 KMCWC Bylaws Page 10 (c) The medical staff shall strive to create and maintain an optimal level of professional performance by its members through the appointment procedure, delineation of medical staff privileges and the continual review and evaluation of each member's clinical activities. (d) The medical staff shall provide procedures by committee or otherwise for regular review, evaluation and monitoring of practices and functions of members for the purpose of maintaining high professional standards of care; (e) There shall be regular medical staff and departmental meetings to review the clinical work of members and to complete medical staff administrative duties; (f) The medical staff shall provide a continuing program of medical education; and the members shall submit or give evidence of participation in the program or comparable programs to the medical staff. ARTICLE XI Conflict of Interest (a) Trustees, officers and employees shall exercise utmost good faith in all transactions involving the Corporation and its property, and they shall comply with the strictest rules of honesty and fair dealing. They shall not use their positions or information gained from such positions in any way to create or participate in a conflict between their interest and the interest of the Corporation. (b) No trustee, officer or employee shall act in any manner which affects the Corporation adversely. (c) No trustee, officer or employee of the corporation shall accept any favor which might influence his actions concerning the Corporation. (d) All trustees, officers and employees of the Corporation shall use their best efforts to avoid any new employment, activity, investment or other interest which would compete with or be in conflict with the interest of the Corporation and in the event any such activity, investment or other interest becomes apparent, the trustee, officer or employee shall disclose the same to the Board of Trustees of the Corporation. (e) If any trustee, officer or employee prepares to undertake any transaction for which there can be any doubt about the existence of a conflict of interest, the trustee, officer or employee shall file a written disclosure with • • the Executive Committee of the Corporation before consummating the transaction. (f) The President of the Corporation shall prepare an appropriate questionnaire to ascertain if any trustee, officer or employee is involved in any transaction which may be deemed a conflict of interest with that of the Corporation. Each trustee, officer and selected employee who receives a copy of the questionnaire shall complete and return it to the President. The President shall report to the Executive Committee all transactions about which there appears to be any question of a conflict of interest. The questionnaire procedure shall be performed at least annually. ARTICLE XII Auditor The Auditor shall be elected annually by the Board. The Auditor shall audit the books and accounts of the Corporation and shall certify its findings and report thereon, in writing, to the members at least annually; and shall make other audits and reports as the Board shall determine from time to time. The Auditor may be a person, copartnership, or a corporation. No member, trustee of a corporate member, or trustee shall be eligible to serve as Auditor of the Corporation. The Auditor may be removed from office either with or without cause at any time at any meeting of the Board. ARTICLE XIII Amendments These Bylaws may be altered, amended or repealed at any meeting of the Board provided that written notice of the meeting shall be given in accordance with section 4.3(d) of these Bylaws, which notice shall state that one of the purposes of the meeting is the consideration of the amendment of these Bylaws and shall set forth the proposed amendments. KMCWC Bylaws Page 11 Human Resources Policy and Procedure: EMPLOYMENT OF RELATIVES Number: 6.6 Reviewed: Effective Date: 11/1/85 Approva1L tt.i Revision Date: 5/1/97 I. Purpose Kapi'olani Health recognizes that relatives of employees may be a valuable source of recruitment for job vacancies. However, it also recognizes employment of relatives in the same organizational entity may cause potential conflicts and create issues of favoritism and employee morale. II. Relatives Defined Relatives are defined as spouses, domestic partners, parents, stepparents, parents -in -law, siblings, stepsiblings, brothers -in law, sisters -in -law, children, stepchildren, children -in -law, grandparents, grandparents-in -law, aunts, uncles, nieces, nephews, first cousins, and legal guardians. III. Procedure • • A. Conditions prohibiting employment. 1. Relatives shall not be employed where the applicant would: a. Directly or indirectly supervise or be supervised by a relative. b. Be employed to work in the same entity, subsidiary, or division as a relative. c. Where a conflict of interest or the perception of a conflict of interest could occur by the applicant working in such areas as administration, finance, materials management, purchasing, or security. 2. Relatives or members of the Leadership Team and other key members of management may not be employed with Kapi olani Health. B. Employee relationships occurring after employment. KAPI'OLANI HEALTH 1, When either a marriage or domestic partnership between two employees occurs in one of the areas listed in A above, changes in employment will not be required. However, a mutually suitable solution shall be sought to avoid continued employment of both - _ employees working in these areas. The two employees who become so involved (marriage or domestic partnership) shall suggest the suitable solutions to the appropriate member(s) of Management Committee, and in consultation with the Vice President of Human Resources, the solution will be documented and implemented. 2. If a direct or indirect supervisory relationship occurs as a result of marriage or domestic partnership, the employees so involved will determine a plan to resolve the situation within the soonest possible time frame. This solution shall be presented to the appropriate Employment of Relatives Page 2 F:P•P\RELATIVE.DOC • • member(s) of Management Committee and the Vice President of Human Resources, and, if approved, will be implemented as soon as practical. Should the solution not be acceptable to management, the group will work together until a solution is found that resolves the situation. Depending on the closeness of the supervisory relationship, management reserves the right to require that the two affected employees determine which one of them will remove themselves from the work environment, either by transfer, demotion, or resignation. This is clearly the least optimal solution, and if it becomes necessary to implement such a solution, an appropriate separation package will be offered, consistent with separation packages given in layoff situations. ;.- • • 1997 INCOME TAX RETURNS KAPI'OLANI MEDICAL CENTER FOR WOMEN AND CHILDREN JERNST &YOUNG LLP • Department of the Treasury Internal Revenue Service B a e a ea a n C a a X W a 4.. a at z Check it. Change of address Initial return Final mum State Please use IRS label or print or type. See Specific Instruo lions. Under section bUt(c) aT the internal nevanue s.uae iewrop. v. trust or private foundation) or section 4947(a)(1) nonexempt Note: The o A For the 1997 calendar year, OR tax C Name of organization KAPI'OLANI MEDICAL CENTER FOR WOMEN AND CHILDREN Number and street (or P.O. box if mail is not delivered to street address) Amended return ventured City, town, or post office, state, and ZIP+ 4 also for 55 MERCHANT STREET, 24TH FLOOR P, i re ) H O N O L U L U , H I 96813 G Type of organization —la I X I Exempt under section 501(c) may have to use a cow of this retVn to satisfy ilk ertod be g inning 07/01 , 19 JSA For Paperwork Reduction Act Notice, see page 1 of the separate instructions. 7E1010 2.000 charitable trust portiho requirements 1 Room /suite d ending 06/30 99 0177350 O Employer identification number E State registration number 10141495 F cheek le I 1 This Form is Open to Public Inspection 19 98 d azernpoon application is pending 3 ) 1 (insert number) OR ► U section 4947(a)(I) nonexempt charitable trust Note: Section 80 /fc13) exempt organizations and 4947141) nonexempt chanrab/e mats MUST attach a mmppted Schedule A (Form 990) H (a) Is this a group return filed for affiliates? U Yes X No I If either box in H is checked eyes' enter four group exemption number (GEN) ► (b) If 'Yes,' enter the number of affiliates for which this return is filed: ► J Accounting method:I 1 Cash 'XI Accrual (c) Is this a se parale return tiled by an organization covered bya group ruling? Yes X No Other (specify) P K Check here ► I I if the organization's gross receipts are normally not more than $25,000. The organization need not file a return with the IRS: but it it received a Form 990 Package in the mail, it should file a return without financial data. Some states require a complete return. Note: form 990£Z maybe used by organizations with gross receipts less than $100,000 and rota/ assets less than $250,000 at end of year. Part I Revenue, Expenses, and Changes in Net Assets or Fund Balances (See Specific Instructions on page 11.) 1 Contributions, gifts, grants. and similar amounts received: STMT 1 a Direct public support la 2,605 445. b Indirect public support 6,823,430. c Government contributions (grants) 1 c 5,452,013. d Total (add lines la through lc) (attach schedule of contributors) (cash$ 12,256,093. noncash$ 2,624,795.) 2 Program service revenue including government fees and contracts (from Part VII, line 93) 3 Membership dues and assessments 4 Interest on savings and temporary cash investments 5 Dividends and interest from securities 6 a Gross rents 6a b Less: rental expenses 6b c Net rental income or (loss) (subtract line 6b from line 6a) 6c 7 Other investment income (describe ► SEE STATEMENT 3 8 a Gross amount from sale of assets other b c d 9 a b c 10a b c 11 12 than inventory Less: cost or other basis and sales expenses Gain or (loss) (attach schedule) Net gain or (loss) (combine line 8c. columns (A) and (8)) Special events and activities (attach schedule) Gross revenue (not including $ of contributions reported on line la) Less: direct expenses other than fundraising expenses Net income or (loss) from special events (subtract line 9b from line 9a) lb 1,279,336, 238,771. 41 (A) Securities 5,898.161. (B) Other Ba 502,893. Bb 5,898.161.8c 1,076,270. - 573,377. 9a 9b Gross sales of inventory, less returns and allowances lOa Less: cost of goods sold l Gross profit or (loss) from sales of inventory (attach schedule) (subtract line 10b from line 10a) Other revenue (from Part VII, line 103) Total revenue (add lines ld, 2, 3, 4 5, 6c, 7, 8d, 9c, 10c, and 11) 297 801. 178,681. 13 Program services (from line 44, column (B)) 14 Management and general (from line 44, column (C)) 15 Fundraising (from line 44, column (D)) 16 Payments to affiliates (attach schedule) 17 Total expense s (add lines 16 and 44, column (A)) 18 Excess or (deficit) for the year (subtract line 17 from line 12) 19 Net assets or fund balances at beginning of year (from line 73. column (A)) 20 Other changes in net assets or fund balances (attach explanation) STMT 4 21 Net assets or fund balances at end of year (combine lines 18, 19, and 20) 3 2 4 5 7 9c l ot 11 12 13 14 15 16 17 18 19 20 21 50F12E 1018 05/05/99 11:05:16 V707 10076381 14 880 888. 141 891 077. 48 254. '5,177,025. 1 040 565. 361 114. 5,324 784. 119 120. 1 323 085. 170 165 912. 97 197 136. 44 429,094. 141 626 230. 28 539 682. 159,581 548. 235 809. 188 357 039. Form 990 (1997) 6 • runctuOnal EA Pc 'Deo section 4947(a)(1l nonexempt cherubic trusts but coon tbers. pee Specific Instructions on page l5.) • Do not include amounts reported on 6b. 8b. 9b. lob, or 16 of Part I. (A) Total (B) Program services (C) Management and general (DI Fundraising 22 Grants and allocations (attach schedule) (•2h, 271 •390. amosh ( 22 23 7,271,390. 7.271.390, Stt4T 25 ^.:;:. . 23 Specific assistance to individuals (attach schedule) 24 Benefits paid to or for members (attach schedule) 25 Compensation of officers. directors, etc. 26 Other salaries and wages 27 Pension plan contributions 28 Other employee benefits 29 Payroll taxes 30 Professional fundraising fees 31 Accounting fees 32 Legal fees 33 Supplies 34 Telephone 35 Postage and shipping 36 Occupancy 37 Equipment rental and maintenance , 38 Printing and publications 39 Travel 40 Conferences, conventions, and meetings 41 Interest 42 Depreciation. depletion. etc. (attach schedule) 43 Other expenses (itemize): aSTMT 5 24 25 175,003. 175,003. 26 47,955,791. 27,976,396. 19,979,395.. 27 1,486,620. 891 , 972. 594,648 . 28 5,290,616. 3,174,370. 2,116,246. 29 3 810,203. 2,286,122. 1,524,081. 30 31 32 27,724. 27.724. 33 12.607,372. 11,339.623. 1,267.749., 34 696,684. 357.950. 238,634. 35 36 1,332,699. 799,619. 533,080. 37 751,647. 450, 988. 300, 659. 38 39 226,389. 135 233. 90,156 . 40 41 4,415.402. 2 , 649 , 241. 1.766.161. 42 6,589,251. 3,953,551. 2.635,700. 43a 49,090,539. 35,910,681. 13,179,858. b 43b c 43c d 43d e 430 44 Total functional expenses ledd tines 22 through 43) Orgenaadons completing columns (3){D), cern1 t h e s e ! rs-ra • • • • • • • 41 141 , 626.230. 97, 197 , 136. 44, 429, 094. • • Part p Statement of All organaations must complete column (A). Columns (B). (C). and (DI are required for section ow Irene, uuu r +r o .1SA Reporting of Joint Costs. - Did you report in column (B) (Program services) any joint costs from a combined educational campaign and fundraising solicitation? ► E Yes It 'Yes,' enter (i) the aggregate amount of these joint costs (iii) the amount allocated to Management and general $ $ ; (lithe amount allocated to Program services $ ; and (iv) the amount allocated to Fundraising $ Part III Statement of Program Service Accomplishments (See Specific Instructions on page 18.) What is the organization's primary exempt purpose? ■ PROVIDE HEALTHCARE All organizations must describe their exempt purpose achievements in a clear and concise manner. State the number of clients served, publications issued, etc. Discuss achievements that are not measurable. (Section 601 (c)(3) and (4) organizations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others.) a ROUTINE HOSPITAL SERVICES - SEE ATTACHED STATEMENT 26 (Grants and allocations $ b ANCILLIARY SERVICES - SEE ATTACHED STATEMENT 26 (Grants and allocations $ NONE) c KAPIOLANI MEDICAL CENTER FOR WOMEN AND CHILDREN AWARDS VARIOUS GRANTS TO ORGANIZATIONS IN THE COMMUNITY TO PROVIDE HEALTHCARE, SOCIAL SERVICES AND EDUCATIONAL PROGRAMS. (Grants and allocations $ 7,271,390.) d 7E1020 2.000 (Grants and allocations $ 50F12E 1018 05/03/99 10:04:54 V707 10076381 NONE) ) ra No Program Service Expenses (Required for 501103l and (4) orgy. and 494740111 trusts: but optional for others,) 45,842,963. 44,045,200. 7,308,973. e Other program services (attach schedule) (Grants and allocations $ f Total of Program Service Expenses (should equal line 44, column (B). Program services) ► 97,197,136. 6 Note: Where required. attached scheo-nd amounts within the description column should be for end -of -year amounts only. (A) Bing of year (B) End of year I Assets 45 Cash - non-interest-bearing 46 Savings and temporary cash investments 47a Accounts receivable b Less: allowance for doubtful accounts 48a Pledges receivable b Less: allowance for doubtful accounts 47a 46,536,939. 45 5,227,362. 46 6.771.431. 24,883,949.47c 38.650 , 702. 476 7 , 886 , 237. 48a 48c 48b 49 Grants receivable 50 Receivables from officers, directors, trustees, and key employees (attach schedule) 51a Other notes and loans receivable (attach schedule) 151 a 794,839. 49 826,411. 50 51 b Less: allowance for doubtful accounts 151b ` 52 Inventories for sale or use 53 Prepaid expenses and deferred charges 54 Investments - securities (attach schedule) SEE. S,TATEMENT..6..... 55a Investments - land, buildings, and equipment: basis b Less: accumulated depreciation (attach schedule) 56 Investments - other (attach schedule) 57e Land, buildings, and equipment basis STMT, 7, 55a 53,178. 1,343,169. 52 1,289 , 205. 1,571,692. 53 ' 1 , 927 083. 95 , 889 , 066 54 1 02, 052 , 37 . 53, 178. ° 55c 53.178. 556 57a 1 29 , 493 , 746 , 56 64,091,213.67c ... 73,011,224. b Less: accumulated depreciation (attach schedule) 57b 56,482,521. 58 Other assets (describe ► SEE STATEMENT 8 ) 23, 503, 469. 58 21,089 918. 59 Total asset (add lines 45 through 58) (must equal line 74) 217.357.927. 59 245.671 626. 16,971,361. Liabilities 60 Accounts payable and accrued expenses 61 Grants payable 62 Deferred revenue STMT. . 9 63 Loans from officers, directors, trustees, and key employees (attach schedule) 64a Tax - exempt bond liabilities (attach schedule) STMT. ,10 b Mortgages and other notes payable (attach schedule) 65 Other liabilities (describe ► SEE STATEMENT 1 1 ) 17,491,799. 60 61 1 , 535 , 107. 62 1,535 107 . 63 30,670,086 . 64a 29,833,065. 64b 8 . 079 , 388. 65 8,974 964 . 66 Total liabilities (add lines 60 through 65) 57,776,379. 56 67,314,487. Net Assets or Fund Balances I Organizations that follow SFAS 117, check here ► I X I and complete lines 67 through 69 and lines 73 and 74, 67 Unrestricted 68 Temporarily restricted 69 Permanently restricted Organizations that do not follow SFAS 117, check here I- ❑ and complete lines 70 through 74. 70 Capital stock, trust principal, or current funds 71 Paid-in or capital surplus, or land, building, and equipment fund 72 Retained earnings. endowment, accumulated income, or other funds 73 Total net assets or fund balances (add lines 67 through 69 OR lines 70 through 72: column (A) must equal line 19 and column (B) must equal line 21) 74 Total liabilities and net assets /fund balances (add lines 66 and 73) 153 , 7 1 2 , 5 1 8 . 67 1 8 1 , 238 944 . 2,923,328. 68 3,728,746. 2,046,702. 69 3,389 349 . _ 70 71 72 159,581 548 , 73 188 , 357 , 039 . 217,357,927. 74 245,671 526. .6n ' Part IV Balance Sheets (See Specific Instructions on page 18.) Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization. How the public perceives an organization in such cases may be determined by the information presented on its return. Therefore, please make sure the return is complete and accurate and fully describes, in Part Ill, the organization's programs and accomplishments. 7E1030 1 000 50F12E 1018 05/03/99 09 :39:23 V707 10076381 7 Instructions on page LU.r (A) Name and address (B) Title and average hours per week devoted to posnio (CI Compensation Of not Paid. enter ID) Contributions to employee benefit Plans & deferred compensation IE) Expense account and other allowances 175,003. 40,951. NONE SEE STATEMENT 18 . Pan IV-A Reconciliation of Revenue per Audited Financial Statements Revenue per Return (See Specific ctions, page 20. a Total revenue, gains, and other support per audited financial statements • ran iv-o necvna,,,r a aeon .,, ".r,— .. - -., r . —. Finaryj@I Statements with Expenses pen Ret a 163249181. 990.829. c a 162258352. 361.114 162619466. a Total expenseWd losses per audited financial statements , ► b Amounts included on line a but not on line 17, Form 990: (1) Donated services and use of facilites $ (2) Prior year adjustments reported on line 20, Form 990 $ (3) Losses reported on line 20, Form 990 $ (41 Other (specify). STMT 14 $ 990,829. Add amounts on lines (1) through (4) ► c Line a minus line b d Amounts included on line 17, Form 990 but not on line a: (1) Investment expenses not included on line 6b, Form 990 ,$ (21 Other (specify): $ Add amounts on lines (1) and (2) , ► e Total expenses per line 17, Form 990 (line c plus line d) ► b d e b Amounts included on line a but not on line 12, Form 990: (1) Net unrealized gains on investments . $ (2) Donated services and use of facilities S (3) Recoveries of prior year grants $ (4) Other (specify): STMT 12 $ 990.829. Add amounts on lines (1) through (4) ► c Line a minus line b ► d Amounts included on line 12. Form 990 but not on line a: (1) Investment expenses not included on line 6b Form 990 $ (2) Other(specdpC__._ STMT 13 $ 361,114. Add amounts on lines (1) and (2) ► e Total revenue per line 12. Form 990 (line c plus line d) ► Part V List of Officers, Directors, Trustees, and Key Emp ogees 75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than $100,000 from your organization and all related organizations, of which more than $10,000 was provided by the related SEE organizations? STATEMENT 20 If 'Yes' attach schedule - see Specific Instructions on page 20. AA 7e7040 7 . 000 50F12E 1018 05/03/99 09:39:23 V707 10076381 142617059. (List each one even if not compensated; see Specific Ix! 990,829. 141626230. 141626230. Yes n No 8 Part VI Other Intormation twee apecnic instructions urn paye c n.I r 76 Did the organization engage in any activity not pu reported to the IRS? If 'Yes? attach a detailed d 77 Were any changes made in the organizing or g g documents but not reported to the IRS? If 'Yes,' attach a conformed copy of the changes. 78a Did the organization have unrelated business gross Income of $1,000 or more during the year covered by b If 'Yes,' has it filed a tax return on Form 990-T for this year? 79 Was there a liquidation, dissolution, termination, or substantial contraction during the year? If 'Yes,' attach 80 Is the organization related (other than by association with a statewide or nationwide organization) through membership, governing bodies, trustees. officers, etc., to any other exempt or nonexempt organization? b If 'Yes,' enter the name of the organization ► STMT 22 and check whether it is exempt OR I I nonexempt 81a Enter the amount of political expenditures, direct or indirect, as described in the instructions for line 81 b Did the organization file Form 1120 -POL for this year? 82a Did the organization receive donated services or the use of materials, equipment or facilities at no charge or at substantially less than fair rental value? b If 'Yes,' you may indicate the value of these items here. Do not include this amount as revenue in Part I or as an expense in Part II. (See instructions for reporting in Part III.) 83a Did the organization comply with the public inspection requirements for returns and exemption applications? b Did the organization comply with the disclosure requirements relating to quid pro quo contributions? , , 84a Did the organization solicit any contributions or gifts that were not tax deductible? b If 'Yes,' did the organization include with every solicitation an express statement that such contributions or gets were not tax deductible? 85 501(X4), (5), or (6) organizations.-a Were substantially all dues nondeductible by members? b Did the organization make only urhouse lobbying expenditures of $2,000 or less? If'Yes' was answered to either 85a or 85b, do not complete 85c through 85h below unless the organize received a waiver for proxy tax owed for the prior year. c Dues, assessments, and similar amounts from members d Section 162(e) lobbying and political expenditures e Aggregate nondeductible amount of section 6033(eX1)(A) dues notices f Taxable amount of lobbying and political expenditures (line 85d less 85e) g Does the organization elect to pay the section 6033(e) tax on the amount in 85f? h If section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount in 851 to its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the following tax year? 86 501(c)(7) organizations. -Enter. a Initiation fees and capital contributions included on line 12 b Gross receipts, included on line 12. for public use of club facilities 87 501(c0 12) organizations.- Enter. a Gross income from members or shareholders b Gross income from other sources. (Do not net amounts due or paid to other sources against amounts due or received from them.) 88 At any time during the year. did the organization own a 50% or greater interest in a taxable corporation or partnership? If 'Yes,' complete Part IX 89a 501(43) organizations.- Enter. Amount of tax paid during the year under. section 4911 ► NONE ; section 4912 ► NONE ; section 4955 I b 501(c)(3) and 501(c)(4) organizations.-Did the organization engage in any section 4958 excess benefit transaction during the year? If 'Yes,' attach a statement explaining each transaction c Enter: Amount of tax imposed on the organization managers or disqualified persons during the year under sections 4912, 4955, and 4958 ► d Enter: Amount of tax in 89c. above, reimbursed by the organization 90a List the states with which a copy of this return is filed ► b Number of employees employed in the pay period that includes March 12. 1997 (See instructions.) I gob I 1 369 91 The books are in care of l KAPI'OLANI HEALTH Telephone no. ► 808 - 535 -7355 Located at► 55 MERCHANT STREET, 24TH FL, HONOLULU ZIP +4 ► 96813 92 Section 4 947(a)(1)nonexempt chanrable trusts filing Form 9.90 in lieu of Form 1041 -Check here and enter the amount of tax-exempt interest received or accrued during the tax year JsA this return? a statement common 81a[ scription of each activity • STMT 21 L82b1 ion 85c 85d 85a 85f 86a 86b 87a 87b N/A N/A N/A N/A N/A NONE NONE 76 77 78a 78b 79 80a 81b 82a 83a 83b 84a 84b 85a 85b 85g 85h 88 89b X X X X X X N N N N N N 7E1041 1000 N/A 50F12E 1018 05/03/99 09:39:23 V707 10076381 ► 192 I N/A 9 A A A A A A Xi. X X X NON NON ►L VII Analysis of Income - Producing Activmes fsee Specific instructions on page c o.t gross amounts unless otherwise • tad. Program service revenue: ROUTINE SERVICES Unrelated business income Excluded b eon 512, 513. or 514 (E) , , Related or exempt function income (A) Business rode (B) Amount (CI Exclusion co (p) Amount 80,351.100. ANCILLIARY SERVICES 8060 275,079. 123,882.523. CONTRACTUAL ADJUST. - 62,757,442. OTHER PROGRAMS Please Sign Here Under pmalaes at perjoy. I declare that I tea examined this men incasing acmnparyng schedules and statemenK end to the bast of my knowledge and belief. it is true, correct, and complete. Dacia ation of preparer (other than officer) is based on all information of which preparer has any knowledge. (See General I a 'on U. on pap 10.) �( ` ? 157;v4 l� t . ,v v� �Cfr 139,817. Date Type or print name and trek. Paid Preparer's Use only PreparPreparers Signature - r Dale 4 7A- 7 /f5 Check if employed ►IC Medicare /Medicaid payments Fees and contracts from government agencies Membership dues and assessments , , , Interest on savings and temporary cash nvertments • Dividends and interest from securities . . Net rental income or (loss) from real estate: debt - financed properly not debt-financed property Net rental income or (loss) from personal properly Other investment income Gain or (loss) from sales of assets other than invemory Net income or (loss) from special events Gross profit or (loss) from sales inventory Other revenue: a Firm's for ERNST & YOUNG LLP EIN ■ 34- 6565596 name r ounsdsell - empbyed) 2400 PAUAH I TOWER, 1001 BISHOP ST ZIP.4 96813 and address HONOLULU, HI 14 48,254. 14 5,177,025. 16 1,040.565. 18 361,114. 18 5,324,784. 03 119.120. PARKING - 03 319,163. CAFETERIA _ _ 03 902.569. REIMBURSEMENTS _ 48.738. OTHER SERVICES 275,079. _ 03 - .-. ... 52,615. 13,345,209. 141,664 736. _ Subtotal (add columns (B).(D), and (E)). . Part IX Information Regarding Taxable Subsidiaries (Complete this Part if the "Yes" box on line 88 is checked.) End-of-year :assets Name, address, and employer identification number of corporation or partnership Percentage of ownership interest Nature of business activities Total income Please Sign Here Under pmalaes at perjoy. I declare that I tea examined this men incasing acmnparyng schedules and statemenK end to the bast of my knowledge and belief. it is true, correct, and complete. Dacia ation of preparer (other than officer) is based on all information of which preparer has any knowledge. (See General I a 'on U. on pap 10.) �( ` ? 157;v4 l� t . ,v v� �Cfr ' officer Signature of offi Date Type or print name and trek. Paid Preparer's Use only PreparPreparers Signature - r Dale 4 7A- 7 /f5 Check if employed ►IC Preparer's SSN 220 -62 -004, Firm's for ERNST & YOUNG LLP EIN ■ 34- 6565596 name r ounsdsell - empbyed) 2400 PAUAH I TOWER, 1001 BISHOP ST ZIP.4 96813 and address HONOLULU, HI Pa LA Enter iodi 93 e b c d e f g 94 95 96 97 a b 98 99 100 101 7ElobU 1.000 102 103 b e d e 104 105 Total add line 104, columns (B), (D), and (E)) Note: (Line 05 p /us line Id, Pan L should equal the amount on line 12, Part Ll Part VIII Relationship of Activities to the Accomplishment of Exempt Purposes (See Specific Instructions on page 26.) Line No. Explain how each activity for which income is reported in column (E) of Part VII contributed importantly to the accomplishment • of the organization's exempt purposes (other than by providing funds for such purposes). SEE STATEMENT 23 50F12E 1018 05/03/99 09:39 :23 V707 10076381 ► 155,285,024 10 . Are 1998). hnmern of the Treasurys nal 8evenue Service Name Kapi'olani Medical Center for Women and Children re type or File the nal end copy by rue date hog your n. See anions on equest an extension I PIe— Type or Print Form Form Form Form Form Number. street and room or suns no. for D.O. box no. d marl is not delivered to street address) 706 -G5(D) 706 -GSM 990 or 9904a 990-BL 990.PF 55 Merchant Street, 24th Floor City, town or pan office. state. and ZIP code. For a foreign address. see instructions. Honolulu, Hawaii 96813 e: Corporate income tax return filers must use Form 70044 to request an extension of time to file. Partnerships, REM /Cs, and trust must use Form 8736 to request an extension o to file Form 1065, 1066, or 1041. of time until May 12) 1999 99GT (sec 401(e) or I081•) trust) 990 (nun other than above) 1041 (estate) (see instructional 1041 -A 1042 Form 1120-ND Form 3520A Form 4720 Form 5227 Form 6069 does not have an office or place of business in the Unit d States, check this box July 1 1997 If this tax year is for less than 12 months. shed reason: n Initial return Has an extension of time to file been previously granted for this tax year? Form Form Fprm Form Form If the organoaton For calendar year , or other tax year beginning state in dead why you need the extension Additional time is reguired to compile all of thg necessary information to file a complete and proper return. If one form is for Form 70669101 706 - iS(7), 9908L 990PF. 9904, 1041 (estate). 1042. 1120410. 4720. 6069. 8612. 8613. 8725. 8804. or 8831, enter the tentative tatt less any nonrefundable credits See instructions H this form is for Form 990PF. 9907. 1041 Coastal, 1042. or 8804. enter any refundable credos and eatnnted tax payments made. Include any prior year overpayment allowed as a credit $ Bolan due. Subtract line lib tom fine 6a. Include your payment with this form. or deposit with FED coupon if required. See instructions S Signature and Verification er parables of perjury. I dedare that 1 have examined this form. including accompanying schedules and statements. end to the ben of my knowledge belief. it is tree. ooneFt. and complete: and that I am authorized to prepare this brat .tun ► P rm. ■ Executive Vice President & CFO Data • f4l49 ORIGINAL AND ONE COPY. The IRS will show below whether or not your application is approved and will return the copy. ice to Applicant - To Be Completed by the IRS We HAVE approved your application. Please attach this form to your return. We HAVE NOT approved your application. However, we have granted a 10-day grace period from the later of the date shown below or the due date of your return (including any prior extensions). This grace period is considered to be a valid extension of time for elections otherwise required to be made on a timely return. Please attach this form to your return. We HAVE NOT approved your application. After considering the reasons stated in item 4. we cannot grant your request for an extension of time to file. We are not granting the 10-day grace period. We cannot consider your application because it was filed after the due date of the return for which an extension was requested. Other: Damao( u warn a copy of this form to be ',turned to an address other than that shown above. phase enter the address Name Number. melt and room or sun. no. for P.O. box no. If mail is not delivered to street address) Crry, town or pail office. nate. and LP code. For • foreign address. see instructions. Paperwork Reduction Act Notice, ass the nest page Certain txcise, Income, information, and voter neaurtts ills n rate application tot each return. 6 ( � (sec. 4951 taxes) and ending OMb No 99- 0177350 . to file (check only ones Form 8612 Form 8613 Form 8725 Form 8804 Form 8831 OrlbAll 1 C Employer rdentrhuoon number • June 30, 1998 II Final return 0 Change b accoumng period Yes U No RECEIVED �I ' 1 9 1 9 9 9 a. Form 2758 (Rev. 698) v. ,rune 1998) R heft of the Treasury xra Revenue Service Name aietwe or -,1rFrie the Waal and COPY by Me date lilt your y lit b ns on u request Number. Form 706 -GS(D) Form 706 -GS(T) a Form 990 or 990-EZ Form 990-8L Form 990-PF mute fl Plane Type or Print Name " t_.Gl tou Kapi'olani Medical Center for Women and Children street. and room or suite no. (or P.O. box no it mail is not delivered to street address 55 Merchant Street, 24th Floor City. town cu post office. Honolulu, Hawaii 96813 orporare income tax return filers must use Form 7004 to request an extension of time to file. Partnerships, REMICs. and ust must use Form 8736 to request an extension of time to file Form 1065, 1066. or 1041. an extension of time until February 15, 1999 Form 9904 - f ee ec-it.jorimen Form 990 trust other than above) Form Form Form 1042 11 the organization does not have an office or place of business in the United States. check this box For calendar year . or other tax year beginning July 1 1997 It this tax year is for less than 12 months. check reason: n Initial return Has an extension of time to fib been previously granted for this tax year? State m detail why you need the extension Additional time is reguested to compile all of the necessary information to file a complete and proper return. If this font, is for Form 7064S(D). 706-GSM. 990-BL 990 990-T, 1041 (estate). 1042. 1120NO. 4720, 6069. 8612. 8613. 8725. 8804, or 8831. enter the tentative tax. less any nonrefundable credits. See instructions If this form is for Form 990-PF, 9904. 1041 (estate). 1042. or 8804. enter any refundable credits and estimated tax payments made. Include any prior year overpayment allowed as a credit S Balance due. Subtract line Sb from line 5a. Include your payment with this form, or deposit with FTD ic coupon if required. Sea instructions S None Signature and Verification der penalties of perjury II /d that I have examined this form. including accompanying schedules and statements. and to the best of my knowledge i belief. h is true. i � / " complete: and than I em authorized to prepare this form. ,t aim Director Paperwork Reduction Act Notice, sae the next page let LOX "pa • seperete application for each return. and ZIP code. For a foreign addrees. see instructions. 1041 (estate) (see instructions) 1041 -A By City. town or post office. state. and ZIP cede. For a foreign address. see instructions. Form 1120-ND Form 3520-4 Form 4720 Form 5227 Form 6069 Number, street and room or sure no. (or P.O. box no. it mail u not delivered to street address) , to file (check only one): (sec. 4951 taxes) Form 8612 Form 8613 Form 8725 Form 8804 Form 8831 Employer oenohcetion number 99- 0177350 and endmg Jure 30, 1998 II Final return E Change in accounting period E Yes Title ► Executive Vice President & CFO Data P /0/314 S' E ORIGINAL AND ONE COPY. The IRS will show below whether or not your application is approved and will return the copy. tice.to Applicant -To Be Completed by the IRS _7 We HAVE approved your application. Please attach this form to your return. _ We HAVE NOT approved your application. However, we have granted a 10-day grace period from the later of the date shown below or the due date of your return (including any prior extensions). This grace period is considers extension of time for elections otherwise required to be made on a timely return. Please attach this form We HAVE NOT approved your application. Alter considering the reasons stated in item 4. we cannot grant an extension of time to file. We are not granting the 10-day grace period. We cannot consider your application because it was filed after the due date of the return for which an ext f8pUB51ed. OGDEN Other. i UT request for U. NT 1 91998 ' th ou want a copy of this form to be returned to an address other than that shown above. please enter the address to which the copy should be sent. Dam No ISA Form 2758 (Rev. 6-98) (See instructions on page 1. List each one. It there are none, enter "None.') N) Name and address of each employee paid more ( (Whale and average ( (e) Compensation e (d) Contributions to ( (e) Expense NRIQUETA MAGBANUA N NURSE (See instructions on page 1. ust each one (wnetner Ingmauals or firms). n mere are none, enter "None.') fa) Name and address of each independent contractor paid more than $60.000 (b) Type of service le) Compensation MORTENSON, M.A. 1099 ALAKEA ST #1580, HONOLULU, HI 96813CONTRACTING 5,216,503. HAWAII OB /GYN 1319 PUNAHOU #824 ST, HONOLULU, HI 96813PHYSICIAN 471,245 KAPIOLANI INFOSERVICES 55 MERCHANT ST 23FL, HONOLULU, HI 96813 DATA PROCESSING 4,141,099. HAWAII RESIDENCY PROGRAM C/O PKF HAWAII 1100 ALAKEA ST #2100, HONOLULU, HI 96813PHYSICIAN 2,921,428. EMERGENCY PHYSICIANS' MEDICAL GROUP 1 MONTGOMERY ST #1360, SAN FRAN CA 94104PHYSICIAN 1,314.000. Total number of others receiving over $50000 for professional services ■ 23 ..' - ....' ... .. . LA ' bet1tUULL H (Form 990) 1 7 Department of the Treasury Internal Revenue Service 7E1210 2.000 1 ...FL9tlflItt1L10f1 Caefllpi LJfluef OVUM-PIS 7V I !G/1J/ (Except P 'vats Foundation) and Section 501(e), 501(f). 501(k), 501 Section 4947(a)(1) Nonexempt Charitabl Supplementary Information See separate instructions. ► Must be completed by the above organizations and attached to their Form 990 or 990 OMB No. 15450047 Name of the organization KAP I ' OLAN I MEDICAL CENTER FOR WOMEN AND Employer identification number CHILDREN 99- 0177350 Part I Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees Part II Compensation of the Five Highest Paid Independent Contractors for Professional Services For Paperwork Reduction Act Notice, see page 1 of the Instructions for Form 990 end Form 990 -EZ. 50F12E 1018 05/03/99 09:39:23 V707 10076381 1997 Schedule A Worm 990) 1997 11 LA ' bet1tUULL H (Form 990) 1 7 Department of the Treasury Internal Revenue Service 7E1210 2.000 1 ...FL9tlflItt1L10f1 Caefllpi LJfluef OVUM-PIS 7V I !G/1J/ (Except P 'vats Foundation) and Section 501(e), 501(f). 501(k), 501 Section 4947(a)(1) Nonexempt Charitabl Supplementary Information See separate instructions. ► Must be completed by the above organizations and attached to their Form 990 or 990 OMB No. 15450047 Name of the organization KAP I ' OLAN I MEDICAL CENTER FOR WOMEN AND Employer identification number CHILDREN 99- 0177350 Part I Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees Part II Compensation of the Five Highest Paid Independent Contractors for Professional Services For Paperwork Reduction Act Notice, see page 1 of the Instructions for Form 990 end Form 990 -EZ. 50F12E 1018 05/03/99 09:39:23 V707 10076381 1997 Schedule A Worm 990) 1997 11 Part HI Statements About Activities 1 During the year, has the organizatio pted to influence national, state, or local legislaticjding any attempt to influence public opinion on a legislative matter or referendum? 1 If 'Yes,' enter the total expenses paid or incurred in connection with the lobbying activities ► $ Organizations that made an election under section 501(h) by filing Form 5768 must complete Part WA. Other organizations checking 'Yes.' must complete Part VI$ AND attach a statement giving a detailed description of the lobbying activities. 2 During the year. has the organization. either directly or indirectly, engaged in any of the following acts with any of ns trustees. directors, officers. creators, key employees, or members of their families, or with any taxable organization with which any such person is affiliated as an officer, director, trustee, majority owner, or principal beneficiary: a Sales, exchange, or leasing of property? b Lending of money or other extension of credit? c Furnishing of goods, services, or facilities? FORM 990 d Payment of compensation (or payment or reimbursement of expenses if more than $1,000)? , p y a Transfer of any part of its income or assets? If the answer to any question is 'Yes,' attach a detailed statement explaining the transactions 3 Does the organization make grants for scholarships, fellowships, student loans. etc? 4 Attach a statement to explain how the organization determines that individuals or organizations receiving grants or loans from it in furtherance of its charitable programs qualify to receive payments. (See instructions on page 2.) Part IV Reason for Non - Private Foundation Status (See instructions on pages 2 through 4.) The organization is not a private foundation because it is (please check only ONE applicable box): 5 _ A church, convention of churches. or association of churches. Section 170(b)(1)(A)(). 6 A school. Section 1 70(b)(1)(A)(ii). (Also complete Pan V, page 4.) 7 X A hospital or a cooperative hospital service organization. Section 170(b)(1)(A)(iii). 8 _ A Federal, state, or local govemment or governmental unit Section 170(b)(1)(A)(v). 9 _ A medical research organization operated in conjunction with a hospital. Section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state ► 10 El An orpan¢ation operated for the benefit of a college or university owned or operated by a governmental unit Section 170(bX1$A)(iv). (Also complete the Support Schedule in Part IV A.) 1la An organization that normallyreceives a substantial part of its support from a govermental unit or from the general public. Section 170(b)(1)(AI(vi). (Also complete the Support Schedule in Part IV -A.) 11b A community trust Section 170(b)(1)(A)(vi). (Also complete the Support Schedule in Part IWA.) 12 An organization that normally receives: (1) more than 33 1/3% of its support from contributions, membership fees, and gross receipts from activities related to its charitable, etc., functions - subject to certain exceptions, and (2) no more than 33 1/3% of its support from gross mvestnent income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(0)(2). (Also complete the Support Schedule in Part IV-A.) 13 n An organization that is not control/0d by any disqualified persons (other than foundation managers) and supports organizations described in: (1) lines 5 through 12 above; or (2) section 501(c)(4), (5), or (6). if they meet the test of section 509(a)(2). (See section 609(a)(3).) Provide the following information about the supported organizations. (See instructions on page 4.) (a) Name(s) of supported organization(s) 14 n An organization organized and operated to test for public safety. Section 509(a)(4) (See instructions on page 4.) JSA 7E12202.000 50F12E 1018 05/03/99 09:39 :23 V707 10076381 lb/Line number from above Yes No X 2b X 2c X 2d X 12 Calendar year (or fiscal year beginning in) • • • • Ill (a) 1996 (b) 1995 (c) Id) 1993 (e) Total 15 Gifts, grants, and contributions received. (Do not include unusual grants. See line 28.) 16 Membership fees received 17 Gross receipts from admissions, merchandise sold or services performed, or furnishing of facilities in any activity that is not a business unrelated to the organization's charitable, etc., purpose 18 Gross income from interest, dividends, amounts received from payments on securities loans (section 512(a)(5)). rents, royalties, and unrelated business taxable income (less section 511 taxes) from businesses acquired by the organization after June 30, 1975 19 Net income from unrelated business activities not included in line 18 20 Tax revenues levied for the organization's benefit and either paid to it or expended on its behalf 21 The value of services or facilities furnished to the organization by a governmental unit without charge. Do not include the value of services or facilities generally furnished to the public without charge 22 Other income. Attach a schedule. Do not include gain or (loss) from sale of capital assets 23 Total of lines 15 through 22 24 Line 23 minus line 17 25 Enter 1% of line 23 26 Organizations described in lines 10 or 11: a Enter 2% of amount in column (e), line 24 NOT, APPI -.I b Attach a list (which is not open to public inspection) showing the name of and amount contributed by each person (other than a governmental unit or publicly supported organization) whose total gifts for 1993 through 1996 exceeded the amount shown in line 26a. Enter the sum of all these excess amounts c Total support for section 509(a)(1) test Enter line 24, column (e) d Add: Amounts from column (e) for lines: 18 19 CABLE. ► ■ P. ► ► ► 26e 26b 26c 26d 22 26b e Public support (line 26c minus line 26d total) • , • f Public support percentage (line 26e (numerator) di vided by line 26c (denominator)) 26 26f Part Wa Support Schedule (Complete only if you checked a box on line 10, 11, or 1 z.l use casn rrmmuu m eovvunmy. 11W r r•r r , 27 Organizations described on line 12: a For amounts included in lines 15, 16. and 17 that were received from a 'disqualified person.' attach a list to show the name of, and total amounts received in each year from, each 'disqualified person.` Enter the sum of such amounts for each year NOT APPLICABLE (1996) (1995) (1994) b For any amount included in line 17 that was received from a nondisqualified person. attach a list to show the name of, and amount received for each year, that was more than the larger of (1) the amount on line 25 for the year or (2) $5,000. (Include in the list organizations described in lines 5 through 1 1. as well as individuals.)After computing the difference between the amount received and the larger amount described in 11) or (2), enter the sum of these differences (the excess amounts) for each year: (1996) (1995) (1994) c Add: Amounts from column (e) for lines: 15 16 17 20 21 d Add: Line 27a total and line 27b total • e Public support (line 27c total minus line 27d total) f Total support for section 509(x)(2) test: Enter amount on line 23, column (e) g Public support percentage (line 27e (numerator) divided by line 27f (denominator)) 42711 (1993) ► 27d 27e 27g 27h (1993) ► 27c ► ► h Investment income percentage (line 18, column (e) (numerator) divided by line 27f (denominator)) 28 Unusual Grants: For an organization described in line 10, 11, or 12 that received any unusual grants during 1993 through 1996, attach a list (which is not open to public inspection) for each year showing the name of the contributor, the date and amount of the grant and a brief description of the nature of the orant. Do not include these grants in line 15. (See instructions on page 4 LA 7E1221 1 oo0 50F12E 1018 05/03/99 09:39:23 V707 10076381 13 . Part V Private School Questionnaire (See instructions on paye 't.r (To be completed ON schools that checked the box on line . art IV) .sn 29 Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws, other governing instrument, or in a resolution of its governing body? 30 Does the organization include a statement of its racially nondiscriminatory policy toward students in all its brochures, catalogues, and other written communications with the public dealing with student admissions, programs, and scholarships? 31 Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during the period of solicitation for students, or during the registration period if it has no solicitation program, in a way that makes the policy known to all parts of the general community it serves? If "Yes,' please describe; if "No,' please explain. (11 you need more space, attach a separate statement.) 32 Does the organization maintain the following: a Records indicating the racial composition of the student body, faculty, and administrative staff? b Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory basis? c Copies of all catalogues, brochures, announcements, and other written communications to the public dealing with student admissions, programs, and scholarships? d Copies of all material used by the organization or on its behalf to solicit contributions? 34a 7E1230 2.000 If you answered 'No' to any of the above, please explain. (If you need more space, attach a separate statement) 33 Does the organization discriminate by race in any way with respect to: a Students' rights or privileges? b Admissions policies? c Employment of faculty or administrative staff? d Scholarships or other financial assistance? e Educational policies? f Use of facilities? g Athletic programs? h Other extracurricular activities? If you answered 'Yes" to any of the above, please explain. Of you need more space, attach a separate statement.) Does the organization b Has the organization's If you answered 'Yes' receive any financial aid or assistance from a governmental agency? right to such aid ever been revoked or suspended? to either 34a or b, please explain using an attached statement 35 Does the organization certify that it has complied with the applicable requirements of sections 4.01 through 4.05 of Rev. Proc. 75 -50, 1975 -2 C.B. 587, covering racial nondiscrimination ? If 'No.' attach an explanation 50F12E 1018 05/03/99 09:39:23 V707 10076381 NOT APPLICABLE 29 30 31 32a 32b 32c 32d 33e 33b 33c 33d 330 33f 330 33h 34e 34b 35 Yes No 14 (a) Line no. (bl Amount involved le) Name of noncharnable exempt organization (dl Description of transfers, transactions, and sharing arrangements 51blvi) 1,619,048. KAPIOLANI HEALTHHI PURCHASE OF HEALTHCARE SERVICE 5lbivi) 333,699. PACIFIC HEALTH CARE PURCHASE OF HEALTHCARE SERVICE 51b(v) 161,593. KAPIOLANI HEALTHHI INTERCOMPANY ADVANCE HEALTH PLAN PARTNERS 501(C)14) 50% OWNED BY KAPIOLANI HEALTH HAWAII PARENT (a) Name of organization (b) Type of organization 10 Description of relationship PACIFIC HEALTH HI HMO 501(C)(4) 20% OWNED BY KAPIOLANI MEDICAL CENTER FOR WOMEN & CHILDREN PARENT KAPIOLANI HEALTHHI HMO 501(C)(4) 100% OWNED - KAPIOLANI MEDICAL CENTER FOR WOMEN & CHILDREN PARENT HEALTH PLAN PARTNERS 501(C)14) 50% OWNED BY KAPIOLANI HEALTH HAWAII PARENT , Part VII Information Regarding Transfers To and Transactions ano neianonsmps vvrari rvvrr ,a,.ta,ai Exempt Organizatio JSA 751250 2.000 51 Did the reporting organization diwor indirectly engage in any of the following 'y other organization described in section 501(c) of the Code (other than section 501(c)(3) organizations) or in section 527. re g to political organizations? a Transfers from the reporting organization to a noncharitable exempt organization of: (i) Cash (ii) Other assets b Other transactions: (i) Sales of assets to a noncharitable exempt organization (5) Purchases of assets from a noncharitable exempt organization (iii) Rental of facilities or equipment (iv) Reimbursement arrangements (v) Loans or loan guarantees (vi) Performance of services or membership or fundraising solicitations t Sharing of facilities, equipment mailing lists, other assets, or paid employees d If the answer to any of the above is 'Yes: complete the following schedule. Column (b) should always show the fair market value of the goods, other assets, or services given by the reporting organization. If the organization received less than fair market value in any transaction or sharing arrangement show in column (d) the value of the goods, other assets services received: 52a Is the organization directly or indirec ly affiliated with, or related to, one or more tax-exempt organizations described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527? • b If ' Yes, " complete the following sc hedule: 50F12E 1018 05/06/99 13:13:31 V707 10076381 51 a(i) Mill b(i) b(ii) b(iii) b(iv) b(v) b(vi) c Yes x x 16 No x x x Yes No KAPI'OLANI MEDICAL CENTER FOR WOMEN AND 99- 0177350 FORM 990, PART I - LIST OF CONTRIBUTORS (NOT OPEN TO PUBLIC INSPECTION) DIRECT INDIRECT PUBLIC PUBLIC GOVERNMENT NAME AND ADDRESS DATE SUPPORT SUPPORT GRANTS F.L. LYMAN 1001 BISHOP STREET HONOLULU, HAWAII 96813 SOPHIE OVEREND 1001 BISHOP STREET HONOLULU, HAWAII 96813 ANNIE H. PARKE 111 SOUTH KING STREET HONOLULU, HAWAII 96813 VARIOUS LESS THAN $5,000 TRANSFER FROM RESTRICTED FUND FEDERAL GRANTS RESTRICTED GRANTS AND CONTRIBUTIONS 33,357. 11,596. 7,407. 10,692. 2,542,393. 82,402. • HAWAII STATE /HONOLULU CITY & COUNTY 3,813,035 • 833,560 805,41E KAPI'OLANI MEDICAL CENTER FOR WOMEN AND 99- 0177350 FORM 990, PART I - LIST OF CONTRIBUTORS (NOT OPEN TO PUBLIC INSPECTION) DIRECT INDIRECT PUBLIC PUBLIC GOVERNMENT NAME AND ADDRESS DATE SUPPORT SUPPORT GRANTS KAPI'OLANI HEALTH 55 MERCHANT STREET, 24TH FLOOR HONOLULU, HAWAII 96813 TOTAL CONTRIBUTION AMOUNTS 2,605,445. 6,741,028. 6,823,430. 5,4 53 • • • FORM 990, PART I - OTHER INVESTMENT INCOME DESCRIPTION AMOUNT ENDOWMENT FUND 361,114. TOTAL 361,114. STATEMENT 3 50F12E 1018 05/03/99 09 :39:23 V707 10076381 19 • • FORM 990, PART I - OTHER INCREASES IN FUND BALANCES DESCRIPTION AMOUNT UNREALIZED GAIN ON INVESTMENTS UNREALIZED GAIN ON RESTRICTED INVESTMENT 153,276. 82,533. TOTAL 235,809. 4 STATEMENT 4 50F12E 1018 05/03/99 09:39:23 V707 10076381 20 KAPI'OLANI MEDICAL CENTER FOR WOMEN AND 99- 0177350 FORM 990, PART II - OTHER EXPENSES DESCRIPTION CORPORATION EXPENSE ALLOCATION OTHER PURCHASED SERVICES BAD DEBTS PHYSICIAN SERVICES DATA PROCESSING SERVICES REPAIR AND MAINTENANCE INSURANCE FOOD INVESTMENT MANAGEMENT FEE LAUNDRY DUES AND SUBSCRIPTIONS OTHER DONATIONS REGISTRY MEDICAL SERVICES EXPENSE RECOVERY OTHER EXPENSES TOTALS PROGRAM MANAGEMENT TOTAL SERVICES AND GENERAL 12577514. 11003137. 9,128,738. 7,793,034. 3,890,618. 1,665,353. 1,409,033. 980,977. 644,656. 643,156. 192,902. 93,958. 39,160. 21,522. - 1047324. 54,105. 7,546,508. 5,031,006. 6,601,882. 4,401,255. 9,128,738. NONE 7.161,565. 631,469. 2,334,371. 1,556,247. 999,212. 666,141. 845.420. 563,613. 588,586. 392,391. 386,794. 257,862. 643,156. NONE 115,741. 77,161. 93,958. NONE 39,160. NONE 21,522. NONE - 628,394. - 418,930. 32,462. 21,643. 49090539. 35910681. 13179858. • FORM 990, PART IV_- I STMENTS - SECURITIES DESCRIPTION CORPORATE STOCKS CORPORATE BONDS GOVERNMENT AGENCIES US GOVERNMENT OBLIGATIONS PREFERRED STOCKS US TREASURY BILLS CONVERTIBLE PREFERRED STOCKS FOREIGN BONDS, NOTES & DEBENT. MONEY MARKET FUNDS TOTALS BEGINNING BOOK VALUE • 38,009,030. 53,022,364. 24,555,603. 22,555,361. 1,355,689. 12,718,545. 24,606,994. 5,275,631. NONE 5,013,674. NONE 2,953,079. 4,073,782. NONE 961,600. 512,700. 2,326,368. 1,020. 95,889,066. 102,052,374. 50F12E 1018 05/03/99 09:39:23 V707 10076381 ENDING BOOK VALUE STATEMENT 6 22 KAPI'OLANI MEDICAL CENTER FOR WOMEN AND LAND, BUILDINGS, EQUIPMENT NOT HELD FOR INVESTMENT FIXED ASSET DETAIL ACCUMULATED DEPRECIATION DETAIL METHOD/ BEGINNING ENDING BEGINNING ENDING ASSET DESCRIPTION CLASS BALANCE ADDITIONS DISPOSALS BALANCE BALANCE ADDITIONS DISPOSALS BALANCE LAND L 285,165. 285,185. NONE NONE NONE CONSTRUCTION IN PRO L 2,487,767. 2,481,761. NONE NONE NONE BUILDINGS & IMPROVE SL 72445274. 72445274. 17644705. 3,072,897. 20711602. FIXED EQUIPMENT SL 9,124,878. 9,124,818. 8,268,063. 115,264. 8,383,321. • MAJOR MOVABLE EQUIP SL 41429089. 41429089. 22473310, 3,244,094. 25717404. MINOR EQUIPMENT SL 683,011. 683,071. 417,369. 93,113. 510,542. COMPUTER SOFTWARE SL 2,084,589. 2,084,589. 823,911. 191,584. 1,021.501. LAND IMPROVEMENTS Sl 353,311. 353,311. 113,900. 18,245. 132,145. TOTALS 129493744. 129493144. 49141264. 56482521. 99-0117330 • Description of Property DEPRECIATION , Asset description Date placed in service VAR Unadjusted Cost or basis 285,765. Bus, % 100.000 179 exp. reduction in basis ITC reduction in basis Basis for depreciation Salvage value % -' Accumulated depreciation NONE Me- shod Cam, . Life _ ACRS class MA CRS class Current -yea 179 expense Current -year depreciation NONE LAND CONSTRUCTION IN PROG VAR 2,481,767. 100.000 NONE NONE BUILDINGS A IMPROVER VAR 72445274, 100.000 72445274. 17644705. St 3,072,891 FIXED EQUIPMENT VAR 9,724,818. 100.000 9 8,268,063. 5L 115,264 MAJOR MOVABLE EQUIPM VAR 41429089. 100.000 41429089. 22473310. SL 3,244,094 MINOR EQUIPMENT VAR 683,071. 100.000 683,011. 417.369. SL 93,113 COMPUTER SOFTWARE VAR 2,084,589. 100.000 2 823,917. SL 197,584 LAND IMPROVEMENTS VAR 353,311. 100.000 353,311. 113,900. SL 245 1 4 Less: Retued Assets „ A.„ ^ °;�. a, ` " ' ” 129493744, ka « .;n z� y. A . ^.�t^ :m3 .. fix. v ,. sz '`:.' <;.�:{� ". ><, ,_ >: ^ -•. ! . §'t "'`• 911126! ;� .&.h><`'i'; vr ^ " t d:x °,: & Yy °; :��s'3'> °;; ;< ` <h " vi . ..c . 5 '$ r�;.,v_�;.w „:,e' :.!:::- .'.' 2 y�it .�F " ',�,S , OLj lt 6 741.25 Subtotals Listed Property ° ?.v.?a: :"i ° �. `' s. Less* Retired Assets ,.h> ,�.vv�'.'S' $ wz°'k „ . • °; S u ti gu � :t. ,��,� "� C: ^\ `>S; ,: h L v : va` .0:7� a^.;%T �u�# .?. ��? � \a�3e�'a?�` C ode .xs cs Life i`isq` t" �w :? ` �` . �4 a e t a : . >a.�. :,P•; "a %s ;Sy?rz� >;yas �`� b�n?`�� a ov' 2 : vD �V> ° Q ; > d ( , >;'y::'E.`u�,';tiE " "a'. n .q.,y,,Y'six:Y: i! Subtotals 129493144, Cost or basis 6,741,2' Current -year amortization TOTALS AMORTIZATION Asset demi •lion Date placed in service ,' S `�'` ' tS : ` - ` ., . ;� C,: , '`, , Y K \ �v ::a °i0Hs•� < a¢ 'I �"' `<tt !9741264. Accumulated amortization s 3` 8 .,... °i;��'° ,°+L tfvf \�,; °v f S.o.,v ?:: y r o,., Et;e;ti: - :)- '4 TOTALS KAPI'OLANI MEDICAL CENTER FOR WOMEN AND Assets Retired JSA 99-0117350 FORM 990, PART IV - 0TH SSETS DESCRIPTION DUE FROM AFFILIATES OTHER RECEIVABLES ACCRUED INTEREST RECEIVABLE ARTWORK TOTALS BEGINNING BOOK VALUE 21,237,742. 1,512,650. 608,743. 144,334. 23,503,469. • 50F12E 1018 05/03/99 09:39:23 V707 10076381 ENDING BOOK VALUE 19,499,430. 831,893. 592,478. 166,117. 21,089,918. STATEMENT 8 24 FORM 990, PART IV - D BRED REVENUE DESCRIPTION DEFERRED INCOME BEGINNING BOOK VALUE TOTALS 1,535,107. • 1,535,107. 1,535,107. 50F12E 1018 05/03/99 09:39:23 V707 10076381 ENDING BOOK VALUE 1,535,107. STATEMENT 9 25 FORM 990, PART - IV - - TAX- MPT BOND LIABILITIES DESCRIPTION BONDS PAYABLE UNAMORTIZED DISCOUNT • BEGINNING ENDING BOOK VALUE BOOK VALUE 31,025,000. 30,170,000. - 354,915. - 336,935. TOTALS 30,670,085. 29,833,065. STATEMENT 10 50F12E 1018 05/03/99 09:39:23 V707 10076381 26 Form 990, Part IV, Line 64a - Tax-exempt bond liabilities Issue Maturity Date or Description of Bond Date Date Retired Special Purpose Revenue Bonds Series 1993 Feb -93 July 1, 2008 New Money Price - Qualified Hospital Bonds Oct -88 July I, 2019 Kapiolani Medical Center for Women and Children EIN: 99- 0177350 FYE: June 30, 1998 Purpose of Issue Refunding of Series 1988 bonds Capital Project None Statement 10 (contd.) Portion of Facility Financed by Issue Used Original Form 8038, 8038 -0 by Third Party Issue Amount or 8038 -GC and date None $14,525,000 Form 8038 - 03/19/1993 $16,500,000 Form 8038 - 10/20 Form 990, Part IV, Line 64a - Tax-exempt bond liabilities Description of Bond Special Purpose Revenue Bonds Series 1993 New Money Price - Qualified Hospital Bond Kapiolani Medical Center for Women and Children EIN: 99- 0177350 Repayment terms FYE: lune 30, 1998 Interest Rate Varying principal and interest 4.6 % -6.3% Varying principal and interest 5% -6.40% Statement 10 (contd.) Security Provided Actual or Anticipated Completion Date of Project Unexpended Bond Financed with Debt Proceeds None None Amount of Issue Outstanding $ 13,670,000 $ 16,500,000 FORM 990, PART ====== IV R O LIABILITIES DESCRIPTION DUE TO AFFILIATES DEFERRED PENSION CREDIT DUE TO GOVERMENT AGENCIES LEASE LOSS RESERVE AGENCY FUNDS HELD FOR OTHERS • BEGINNING ENDING BOOK VALUE BOOK VALUE 1,999,992. 2,789,708. 3,290,117. NONE -429. 4,546,557. 2,478,571. 1,818,737. 191,966. - 60,877. TOTALS 8,079,388. 8,974,954. 50F12E 1018 05/03/99 09:39:23 V707 10076381 STATEMENT 11 27 FORM 990, PART IV_A - OT REVENUE ON BOOKS BUT NOT N RETURN DESCRIPTION AMOUNT RENTAL EXPENSES LOSS ON ASSET DISPOSAL COST OF INVENTORY SOLD 238,771. 573,377. 178,681. TOTAL 990,829. STATEMENT 12 50F12E 1018 05/03/99 09:39:23 V707 10076381 28 FORM 990, PART - IV -A THER REVENUE ON RETURN BUT OT ON BOOKS DESCRIPTION AMOUNT ENDOWMENT FUND INCOME 361,114. TOTAL 361,114. STATEMENT 13 50F12E 1018 05/03/99 09:39:23 V707 10076381 29 FORM 990, PART IV -B - OT EXPENSES ON BOOKS BUT NOT ON RETURN RENTAL EXPENSES LOSS ON ASSET DISPOSALS COST OF INVENTORY SOLD DESCRIPTION AMOUNT 238,771. 573,377. 178,681. TOTAL 990,829. STATEMENT 14 50F12E 1018 05/03/99 09:39:23 V707 10076381 30 __...., ..c,.,cn run nuMtn ANU 99- 0177350 FORM 990, PART V - LIST OF OFFICERS, DIRECTORS, AND TRUSTEES NAME AND ADDRESS CLINTON R. CHURCHILL 634 KAIMALINO STREET HONOLULU, HAWAII 96734 ROGER DRUE 4840 KAHALA AVENUE HONOLULU, HAWAII 96816 HARVEY W. SMITH 64 WHITE SANDS PLACE KAILUA, HAWAII 96734 FRANCES A. HALLONQUIST 2354 LILOA RISE HONOLULU, HAWAII 96822 CHARLES A. STED 1544 IHILOA LOOP HONOLULU, HAWAII 96821 JOHN JEFFRIES 3302 KAOHINANI DRIVE HONOLULU, HAWAII 96817 ROSE MARY BUCHER, RN 2030 KUOLA PLACE HONOLULU, HAWAII 96821 GREGG OISHI 29 KAUHOLU PLACE KAILUA, HAWAII 96734 TITLE AND TIME DEVOTED TO POSITION COMPENSATION CHAIR /TTEE PART -TIME PRES /TTEE PART -TIME EVP /TREAS PART -TIME EVP /CEO PART -TIME EVP /CFO PART -TIME SVP PART -TIME VP /CNE FULL -TIME VICE -PRES. PART -TIME NONE 631,572.* 374,331.* 316,150.* 123,392.* 276,260.* 94,477.* 234,194.* CONTRIBUTIONS TO EMPLOYEE BENEFIT PLANS NONE 82,550. 42,604. 38,816. 12,637. 31,132. 10,695. 30,180. EXPENSE ACCT AND OTHER ALLOWANCES NONE NONE • NONE NONE NONE NONE • NONE NONE SPSLN %s.000 50F12E 1018 05/12/99 08:11:35 V707 10076381 31 STATEMENT 15 KAPI'OLANI MEDICAL CENTER FOR WOMEN AND 99- 0177350 FORM 990, PART V - LIST OF OFFICERS, DIRECTORS, AND TRUSTEES NAME AND ADDRESS TITLE AND TIME DEVOTED TO POSITION COMPENSATION CONTRIBUTIONS TO EMPLOYEE BENEFIT PLANS EXPENSE ACCT AND OTHER ALLOWANCES PHILLIP F. MOON VICE -PRES. 189,429.* 26,325. NONE P.O. BOX 25193 PART -TIME HONOLULU, HAWAII 96825 WILLOW MORTON VICE -PRES. 112,044.* 17,302. NONE 3106 KAHIWA PLACE FULL -TIME HONOLULU HAWAII 96822 RICHARD C. ROBEL VICE -PRES. NONE* NONE NON, 119 KANAPU'U PLACE PART -TIME KAILUA, HAWAII 96734 CLAUDIA ROSENFELD VICE -PRES. 211,337.* 26,906. NONE 3032 KAHAKI PLACE PART -TIME KAILUA, HAWAII 96734 -5900 MARTHA SMITH VICE -PRES. 133,515.* 19,763. NONE 46 -324 HAIKU ROAD #108 FULL -TIME KANEOHE, HAWAII 96744 NEAL WINN M.D. VICE -PRES. 100,738.* 23,573. NONE 2047 NUUANU AVENUE #1104 FULL -TIME HONOLULU, HAWAII 96817 PAULA M. SUMIDA SECRETARY NONE* NONE NON 5085 POOLA PLACE PART -TIME HONOLULU, HAWAII 96821 BETTY KANESHIRO ASST. SEC. NONE* NONE NONE 973 KALOALOA STREET PART -TIME HONOLULU, HAWAII 96825 , SPSINK 2 .uoo 50F12E 1018 05/12/99 08:11:35 V707 10076381 32 ,STATEMENT 16 KAPI'OLANI MEDICAL CENTER FOR WOMEN AND 99- 0177350 FORM 990, PART V - LIST OF OFFICERS, DIRECTORS, AND TRUSTEES NAME AND ADDRESS TITLE AND TIME DEVOTED TO POSITION COMPENSATION CONTRIBUTIONS TO EMPLOYEE BENEFIT PLANS EXPENSE ACCT AND OTHER ALLOWANCES RODNEY B. BOYCHUK M.D. TRUSTEE 128,297. ** 5,270. NONE 2131 -A ATHERTON ROAD PART -TIME HONOLULU, HAWAII 96822 BENTON CHUN M.D. TRUSTEE NONE NONE NONE • 1329 LUSITANA STREET PART -TIME HONOLULU, HAWAII 96813 CORA K. LUM TRUSTEE NONE NONE NONE 4820 MATSONIA DRIVE PART -TIME HONOLULU, HAWAII 96816 MAUDE S. NISHIMOTO TRUSTEE NONE NONE NONE 2063 AKAIKAI LOOP PART -TIME PEARL CITY, HAWAII 96782 ALLAN H. RENTON TRUSTEE NONE NONE NONE 3165 C DIAMOND HEAD ROAD PART -TIME HONOLULU, HAWAII 96815 MRS. V.M. "TAD" SEWELL TRUSTEE NONE NONE NONE • 1635 KALANIIKI STREET PART -TIME HONOLULU, HAWAII 96821 CALVIN C.J. SIA M.D. TRUSTEE NONE NONE NONE 656 PAIKAU STREET PART -TIME HONOLULU, HAWAII 96816 JOHN K. TSUI TRUSTEE NONE NONE NONE 927 KOLOA STREET PART -TIME HONOLULU, HAWAII 96816 SPSLN % 2000 50F12E 1018 05/12/99 08:11:35 V707 10076381 33 STATEMENT 17 KAPI'OLANI MEDICAL CENTER FOR WOMEN AND 99- 0177350 FORM 990, PART V - LIST OF OFFICERS, DIRECTORS, AND TRUSTEES NAME AND ADDRESS JENAI SULLIVAN WALL TRUSTEE 4360 KAHALA AVENUE PART -TIME HONOLULU, HAWAII 96816 LESS: OFFICERS COMPENSATED BY KAPI'OLANI HEALTH LESS: OFFICERS COMPENSATED BY KAPI'OLANI MEDICAL SPECIALISTS TITLE AND TIME DEVOTED TO POSITION COMPENSATION N O N E GRAND TOTALS 175,003. CONTRIBUTIONS TO EMPLOYEE BENEFIT PLANS -2622436* - 321,532. -128,297** - 5,270. EXPENSE ACCT AND OTHER ALLOWANCES NONE NONE 40,951. NONE • • SPSLN %2.000 E0F12E 1018 05/12/99 08:11:35 V707 10076381 34 STATEMENT 18 u .m. KAPI'OLANI MEDICAL CENTER FOR WOMEN AND 99- 0177350 FORM 990, PART V - COMPENSATION PROVIDED BY RELATED ORGANIZATION NAME AND ADDRESS ROGER DRUE 4840 KAHALA AVENUE HONOLULU, HAWAII 96816 HARVEY W. SMITH 64 WHITE SANDS PLACE KAILUA, HAWAII 96734 FRANCES A. HALLONQUIST 2354 LILOA RISE HONOLULU, HAWAII 96822 CHARLES A. STED 1544 IHILOA LOOP HONOLULU, HAWAII 96821 JOHN JEFFRIES 3302 KAOHINANI DRIVE HONOLULU, HAWAII 96817 ROSE MARY BUCHER, RN 2030 KUOLA PLACE HONOLULU, HAWAII 96821 GREGG OISHI 29 KAUHOLU PLACE KAILUA, HAWAII 96734 PHILLIP F. MOON P.O. BOX 25193 HONOLULU, HAWAII 96825 TITLE AND TIME DEVOTED TO POSITION COMPENSATION PRES /TTEE PART -TIME EVP /TREAS PART -TIME EVP /CEO PART -TIME EVP /CFO PART -TIME SVP PART -TIME VP /CNE FULL -TIME VICE -PRES. PART -TIME VICE -PRES. PART -TIME SPSIN% 3.000 enc i nc I n i g nR / 19 /qq 08:11:35 V707 10076381 631,572. 374,331. 316,150. 123,392. 276,260. 94,477. 234,194. 189,429. CONTRIBUTIONS TO EMPLOYEE BENEFIT PLANS 82,550. 42,604. 38,816. 12,637. 31,132. 10,695. 30,180. 26,325. EXPENSE ACCT AND OTHER ALLOWANCES NONE NONE • NONE NONE NONE NONE • NONE NONE 35 STATEMENT 19 KAPI'OLANI MEDICAL CENTER FOR WOMEN AND 99- 0177350 FORM 990, PART V - COMPENSATION PROVIDED BY RELATED ORGANIZATION NAME AND ADDRESS WILLOW MORTON 3106 KAHIWA PLACE HONOLULU, HAWAII 96822 CLAUDIA ROSENFELD 3032 KAHAKI PLACE KAILUA, HAWAII 96734 -5900 MARTHA SMITH 46 -324 HAIKU ROAD #108 KANEOHE, HAWAII 96744 NEAL WINN M.D. 2047 NUUANU AVENUE #1104 HONOLULU, HAWAII 96817 RODNEY B. BOYCHUK M.D. 2131 -A ATHERTON ROAD HONOLULU, HAWAII 96822 TITLE AND , TIME DEVOTED TO POSITION COMPENSATION VICE -PRES. FULL -TIME VICE -PRES. PART -TIME VICE -PRES. FULL -TIME VICE -PRES. FULL -TIME TRUSTEE PART -TIME CONTRIBUTIONS TO EMPLOYEE BENEFIT PLANS GRAND TOTALS 2,750,733. 326,802. EXPENSE ACCT AND OTHER ALLOWANCES 51,866. 4,956. NONE 211,337. 26,906. NONE 60,305. 6,109. NONE 59,123. 8,622. NONE 128,297. 5,270. NONE NONE • SPSLN %2 000 50F12E 1018 05/12/99 08:11:35 V707 10076381 36 STATEMENT' 20 • • FORM 990, PART VI - CHANGES TO ORGANIZING OR GOVERNING DOCUMENT AMENDMENTS MADE TO NUMBER AND QUALIFICATION OF TRUSTEES AND TERM OF MEMBERSHIP - SEE ATTACHED. 50F12E 1018 05/03/99 09:39:23 V707 10076381 STATEMENT 21 37 amended /15/97 ARTICLE IV BOARD OF TRUSTEES Section 4.1 Number and Qualification of Trustees. There shall be not less than eleven nor more than seventeen trustees. The number of trustees for any following year shall be determined by the voting member- ship at the annual meeting. The President of the Corpor- ation and the Chief of Staff shall be trustees. The remaining trustees shall be elected by the membership at the annual meeting to hold office for the term elected and thereafter until their successors are duly elected and qualified, provided that additional trustees may be elected at any special meeting of the membership called for that purpose during the year to fill any unfilled positions. Section 4.2 Term of Membership. The initial term of each Trustee shall be for a period of one year and thereafter the time shall be three years, except that shorter terms may be set so that the terms of approxi- mately one -third of the total number constituting the Board shall expire each year. The term of each President and Chief of Staff as Trustees shall continue so long as each occupies that position. Any member of the Board may be removed from office upon the affirmative vote of not less than three - fourths of the Board. No trustee may serve for more than three consecutive terms. KAPIOLANI KAPIOLANI KAPIOLANI KAPIOLANI KAPIOLANI KAPIOLANI KAPIOLANI KAPIOLANI FORM 990, PART VI - NAMES OF RELATED ORGANIZATIONS HEALTH MEDICAL CENTER AT PAL HEALTH FOUNDATION HEALTHHAWAII HOME HEALTH SERVICES EXTENDED CARE MEDICAL SPECIALISTS SERVICE CORPORATION & - EXEMPT I MOMI - EXEMPT - EXEMPT - EXEMPT - EXEMPT - EXEMPT - EXEMPT SUBS. - NOT EXEMPT STATEMENT 22 50F12E 1018 05/03/99 09:39:23 V707 10076381 38 • • FORM 990, PART VIII - ACCOMPLISHMENT OF EXEMPT PURPOSES LINE EXPLANATION OF HOW EACH ACTIVITY FOR WHICH INCOME NO. IS REPORTED IN COLUMN (E) OF PART VII CONTRIBUTED IMPORTANTLY TO THE ACCOMPLISHMENT OF EXEMPT PURPOSES 93A& ROUTINE AND ANCILLARY SERVICES COMPRISE PATIENT SERVICE B,C REVENUES AND ARE USED TO PAY COSTS INCURRED IN PROVIDING HOSPITAL AND SUPPORTING HEALTH SERVICES TO THE PUBLIC. THESE REVENUES ARE PARTIALLY OFFSET BY A CONTRACTUAL ADJUSTMENT NEGOTIATED WITH THIRD PARTY PAYORS. AN ESTABLISHED CHARITY CARE POLICY SETS GUIDELINES TO DETERMINE WHICH PATIENTS QUALIFY FOR CARE GIVEN AT NO CHARGE. SERVICES PROVIDED FOR QUALIFIED CHARITY CARE PATIENTS ARE NOT REPORTED AS REVENUE. 93D MEDICAL RESIDENCY PROGRAM - REVENUES RECEIVED FROM UNIVERSITIES HELP SUPPORT THE COST OF PROVIDING RESIDENCY TRAINING TO PHYSICIANS. EDUCATION COURSES & PROGRAMS - VARIOUS HEALTH EDUCATION CLASSES AND DIETARY COUNSELING SERVICES TO ITS PATIENTS AS PART OF THE PATIENT'S HEALTH CARE REGIMEN. 103C MISCELLANEOUS REIMBURSEMENTS - COVERS COST OF ADMINISTRATIVE SERVICES RENDERED (E.G. PROVIDING COPIES AND HOSPITAL RECORDS, ETC.). PURCHASE DISCOUNTS, ETC. STATEMENT 23 50F12E 1018 05/03/99 09:39:23 V707 10076381 39 Description Date Acquired Date Sold Gross Sales Price Cost or Other Basis Long -term Gain /Loss 20% MAXIMUM RATE CAPITAL GAINS (LOSSES) VARIOUS SECURITIES VAR VAR 5 898 161. 5,898,161. OTHER ASSETS VAR VAR 502 893 1 076 270, - 573 377. TOTAL 20% MAXIMUM RATE CAPITAL GAINS (LOSSES) 5,324,784. • • 6,401,054. 1,076,270. 5,324,784 KAPI'OLANI MEDICAL CENTER FOR WOMEN AND Schedule D Detail of Long -term Capital Gains and Losses 99- 0177350 JSA KAPI'OLANI MEOL CENTER FOR WOMEN AND CHILI. SUMMARY OF C RACT AND GRANT ACCOUNTS FOR THE FISCAL YEAR: 07/97 - 06/98 GRANT NAME REHAB - UAP PARKE -DAVIS PROTOCOL 960 -036 CRC -KHRI CONTRIBUTION MOTHERSCARE - STATE CPS WEST HAWAII - TITLE IVB CLINICAL TRIALS CENTER (CTC) TIP - PARENT TO PARENT CPS WEST HAWAII - FSSWH SATC - VOCA SATC - HPD SEX ABUSE TREATMENT CENTER CLINICAL RESEARCH CENTER NEONATAL RESEARCH - NAKAMURA HIGH RISK INFANTS ON APNEA MONITORS HFSC - HAROLD CASTLE FOUNDATION HFSC - DANCE WITH YOUR BABY CDC - HEPATITIS C VIRUS SATC - FEE FOR SERVICE PEDIATRIC IMMUNOLOGY PROGRAM CPS - FEE FOR SERVICE HCF - FISH FUND HFSC - TRAINING FEES HFSC - FUNDRAISING HFSC - ALGER FOUNDATION HFSC - FAMILY ASSESSMENT HFSC - EWA HEALTHY START HFSC - DIAMOND HEAD HEALTHY START HFSC - HEALTHY START TECHNICAL ASSISSTANCE CONCERN FOUNDATION HUMAN NEUROBLASTOMA AWARD AMT 14,000 27,000 80,000 154,261 156,362 52,119 28,377 100,000 67,158 335,000 797,384 425,935 75,000 426,439 40,000 37,271 136,334 178,075 83,223 274,409 36,792 346,293 90,535 171,157 433,507 436,242 388,999 153,611 50,000 HPC HEALTH EDUCATOR 3 8, 5 49 QUEEN EMMA FOUNDATION 83,103 DETENTION HOME 27,766 MERCK ROTAVIRUS STUDY 26,304 AAP: PEER PROVIDER EDUCATION PROJECT 41,667 AAP - AFIX 122,000 CPS STATEWIDE - OAHU 549,237 LEAHI FUND - ACUTE LUNG INJURY 25,000 MOBILE THERAPY (0-3) 150,882 MOBILE THERAPY TEAM - MISC 377,918 NICU COORDINATION 19,616 CRC - MCKEE FUND 45,325 WCSTATE 168,539 TOTAL AWARDED 7,271,390 STATEMENT 25 KAPI'OLARfMEDICAL CENTER FOR WOMEN AND•DREN FEDERAL I.D. NO. 99 -0177350 JUNE 30,1998 PART Ill - Statement of Program Accomplishments Kapi olani Medical Center for Women and Children (KMCWC) provides healthcare regardless of race, creed, sex, national origin, handicap, age or ability to pay. KMCWC is a 232 bed /90 bassinet non - profit hospital which has been designated the level Ill, Tertiary Care and Perinatal Center of the Pacific Basin by the State of Hawaii. Its activities as a specialty medical center include providing for medical, health and social services for the care of the women and children of Hawaii. Kapi'olani also serves as the major obstetrical, gynecological and pediatric teaching facility for the University of Hawaii John A. Burns School of Medicine. During the fiscal year ended June 30, 1998 KMCWC engaged in the following activities which were in the furtherance of its charitable purposes: • Provided hospital services to 16,575 patients and provided in excess of 115,000 outpatient services Inpatient services included labor and delivery, neonatal ICU, pediatric ICU admissions, and patients transported to the NICU and PICU from other parts of Oahu, neighbor islands and the Pacific Basin. • Obstetrics /Gynecology Fetal Diagnostic Center Genetic counseling services GYN oncology services 24 hour emergency services • Pediatrics Pediatric Open Heart Program Pediatric Outpatient Clinic Pediatric Immunology Program Surgical, medical, oncology services • Outreach Programs Sex Abuse Treatment Center Child Protective Services Team Teen Intervention Program Healthy Mothers Healthy Babies Family Planning Services Mobile Service Therapy Team Bereavement Program • Other Programs Kapi'olani Center for Women's Health KMC Genetics Group Hawaii Poison Center STATEMENT 26 r Form �V�f Department of the Treasury Internal Revenue Service A - R - Check box it address changed B Exempt under section 5011C )i3 )or 408(e) I 1220(e) 0o va ue o a assets at end of year For calendar year 1997 or Please Print or Type J The books are in care of ►KAP I ' OLAN I HEALTH Part I Unrelated Trade or Business Income 1e Gross receipts or sales 875,802. b Less returns and allowances I e Balance OP 2 Cost of goods sold (Schedule A. line 7) 3 Gross profit (subtract line 2 from line 1c) 4a Capital gain net income (attach Schedule 0) b Net gain (loss) (Form 4797, Part II, line 18) (attach Form 4797) c Capital loss deduction for trusts 5 Income (loss) from partnerships (attach statement) 6 Rent income (Schedule C) 7 Unrelated debt-financed income (Schedule El B Interest annuities, royalties, and rents from controlled organizations (Schedule F) 9 Investment income of a section 501(c(7), (9), or (17) organization (Schedule G) 10 Exploited exempt activity income (Schedule I) 11 Advertising income (Schedule .1) 12 Other income (see page 7 of the instructions - attach schedule? 13 TOTAL (combine lines 3 through 12 .6A For Paperwork Reduction Act Notice, see instructions. 7E16103000 50F12E 1018 04/15/99 (and proxy tax under section ou.aa I, ex year begbrning 07/01 , 1997. and *Win . 6/30 .19 9 8 • see s• .. rate instructions. Name of organize ion KAPI'OLANI MEDICAL CENTER FOR WOMEN AND CHILDREN Number. street. and room or suite no. Of a P.O. box, see page 5 of instructions) 55 MERCHANT STREET 24TH FLOOR Crty or town, state, and ZIP code HONOLULU, HI 96813 Telephone number P ( 808 14 Compensation of officers, directors, and trustees (Schedule K) 15 Salaries and wages 16 Repairs and maintenance 17 Bad debts 18 Interest (attach schedule) 18 Taxes and licenses 20 Charitable contributions (see page 9 of the instructions for limitation rules) 21 Depreciation (attach Form 4562) 121 I NON 22 Less depreciation claimed on Schedule A and elsewhere on return 22e 23 Depletion 24 Contributions to deferred compensation plans 25 Employee benefit programs 26 Excess exempt expenses (Schedule I) 27 Excess readership costs (Schedule J) . . . 28 Other deductions (attach schedule) SEA, , STATE►JlEJJT 3 29 TOTAL DEDUCTIONS (add lines 14 through 28) 30 Unrelated business taxable income before net operating loss deduction (subtract line 29 from line 13) 31 Net operating loss deduction 32 Unrelated business taxable income before specific deduction (subtract line 31 from line 30) 33 Specific deduction 34 Unrelated business taxable income (subtract line 33 from line 32). If line 33 is greater than line 32, enter the smaller of zero or line 32 10:01:06 V707 10076381 D Employer identification number (Employees' trust. see instructions for Block D on page 6.) 99- 0177350 11097 E Unrelated business activity codes (see instructions for Block E on page 6.) 8060 F Group exemption number Isee instructions for Block F on .age 6) ► G Check type of organization ► X 501(c) corporation 501(c) trust Section 401(a) trust H Describe the organization's primary unrelated business activity. ► SEE STATEMENT 1 I During the tax year, was the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? ► U Yes u No If "Yes • enter the name and identifying number of the parent corporation. ► SEE STATEMENT 2 Section 408(a) trust 220(d) trust 535 -7355 ) 1c 3 4a 4b 4c 6 6 7 8 9 10 11 12 13 (A) Income 875,802. 600,723. 275,079. 275,079. (B) Expenses (C) Net 275 079. 275,079. Part II Deductions Not Taken Elsewhere (See page 8 of the instructions for Imitations on deductions.) (Except for contributions, deductions must be directly connected with the unrelated business income.) E 14 15 16 17 18 19 20 22b 23 24 26 26 27 28 29 30 31 32 33 166 265. 8 961. 12 250. NONE 136 442 313 918. -38 839. -38 839. 1 000. Form 990 (1997) 21 Part 11) . Tax Computation Part IV Tax and Payments 2 Purchases 3 Cost of labor 4a Additional section 263A costs (attach schedule) b Other costs (attach schedule) 5 TOTAL -A Please Sign Here here Paid Prepare/ s Use Only • at order). ,000. 35e 36 37 38 r 35 Organizations Taxable as Corpora ee instructions for tax corn utation on page 10). Controlled group members (sections and 1583) - check here . See Instruction: a Enter your share of the $50.000. $25,000. and $9.925.000 taxable income brackets (in th (1)1 50,000.1 (2)1 25,000.1 (3)L 9 925 b Enter organization's share of: (1) additional 5% tax (not more than $11,750) (2) additional 3% tax (not more than $100,000) c Income tax on the amount on line 34 36 Trusts Taxable at Trust Rates (see instructions for tax computation on page 11) Income tax on the amount on line 34 from: I I Tax rate schedule or Schedule D (Form 1041) 37 Proxy tax (see page 11 of instructions) 38 Total (add line 37 to line 35c or 36, whichever applies) 39a 39b 39c 39d 44a 44b 440 44d 44a 44f attached 14,500. 9,000. ► ► I Refunded 10. 39e 40 41 42 43 45 46 47 48 49 39a Foreign tax credit (corporations attach Form 1118; trusts attach Form 1116) b Other credits. (see page 12 of the instructions) e General business credit - Check if from: pi I I Form 3800 or n Form (specify) ■ d Credit for prior year minimum tax (attach Form 8801 or 8827) s Total (add lines 39a through 39d) 40 Subtract line 39e from line 38 41 Recapture taxes. Check if from: n Form 4255 E Form 8611 42 Alternative minimum tax 43 Total tax (add lines 40, 41, and 42) 44 Payments: a 1996 overpayment credited to 1997 b 1997 estimated tax payments , , , , , , c Tax deposited with Form 7004 or Form 2756 .. E.E. STf1TE)iAENT, 4, d Foreign organizations -Tax paid or withheld at source (see instructions) a Backup withholding (see instructions) Other credits and payments (see instructions) 45 Total payments (add lines 44a through 44f) 46 Estimated tax penalty (see page 3 of the instructions). Check PO' n if Form 2220 is 47 Tax due. If line 45 is less than the total of lines 43 and 46. enter amount owed 48 Overpayment - If line 45 is larger than the total of lines 43 and 46, enter amount overpaid 49 Enter the amount of line 48 You want Credited to1998 estimated tax ► Part V Statements Regarding Certain Activities and Other Information (See instructions on 1 At arty time during the 1997 calendar year. did the organization have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account securities account or other financial account)? If 'Yes,' the organization may have to file Form TD F 90-22.1. If 'Yes,' enter the name of the foreign country Yes 2 During the tax year, did the organization receive a distribution from, or was it the grantor of. or transferor to, a foreign trust? If ryes' see page 13 of the instructions for other forms the organization may have to fife. 3 Enter the amount of tax -exempt interest received or accrued during he tax year ► SCHEDULE A - COST OF GOODS SOLD (See instruct ons on page 14.) Method of inventory valuation (specify) ► 1 Inventory LA HONOLULU, HI 7E1630 ,.000 50F12E 1018 04/15/99 10:01:06 V707 10076381 NONE 23,500. NONE 23 500. 23,500. page 13. at beginning of year Firm's name for yours. it self-employed) and address 1 2 NONE 600,723. 3 4e 4b Preparers signature 6 Inventory at end of year 7 Cost of goods sold. Subtract line 6 from line 5. (Enter here and on line 2. Part I.) 7 8 Do the rules of section 263A (with respect to property produced or acquired for resale) apply to dd lines 1 through 4b 5 600,723. the organization? Under penahies of penury. I declare that I have examined this return, inducting accompanying sdtedulas and statements and to the best of my knovAed belief. h is nuucOrt. and cornda . Da 'ion at peparer (When/Ian taxpayer) is based on al idormaaon of with pepanx has any knowledge. / , z 4G✓t�C;�(� ' (7 c //v /4'S /TAO Signature of officer or fiduciary Date ' Title Dale ' ERNST & YOUNG LLP 2400 PAUAHI TOWER, 1001 BI$ Check it self - employed ► El N 600,7 Yea Preparer's social security number 220 -62 -0047 EIN ► 34- 6565596 ZIP code ► 96813 22 NONE NONE NONE NONE No ONE 23. No X e and (41 2 Rent received or accrued 3 Deductions directly connected with the income in columns 2(a) and 2(b) (attach schedule) la) From personal property (d the percentage of rent for personal property is more than 10% but not more than 50 %) (b) From real and personal property (if the percentage of rent for personal property exceeds 50% or if the rent is based on profit or income) 1131 Other deductions (attach schedule) (b) Taxable income computed as though not exempt under sac. 501(a). or the amount in col. (a). whichever a larger (c) column (a) divided by column (b) (1) (1) (2) (3) Total To Total Total deductions. Enter here and on line 6. column (B), Part I, page 1 • . .► Total Income (Add totals of columns 2(a) and 2(6). Enter here _ -..1 ..., l:.,e a rnl„mn (Al_ Part I. page 1.) • • • • • • • " te r r 1 Description of debt - financed property 2 Gross income from or allocable to debt - financed property 3 Deductions directly connected with or allocable to debttinanced property (a) Straight line depreciation (attach schedule) 1131 Other deductions (attach schedule) (b) Taxable income computed as though not exempt under sac. 501(a). or the amount in col. (a). whichever a larger (c) column (a) divided by column (b) (1) (2) (3) % (2) (4) 4 Amount of average acquisition debt on or allocable to debt -financed (attach schedule) 5 Average adjusted basis of or allocable to debt4inanced property (attach schedule) 6 Column 4 divided by column 5 7 Gross income reportable (column 2 x column 6) 8 Allocable deductions (column 6 x total of columns 3(e) and 3(b)) property % % ( 6 Gross income eportable (column 2 x column 4(c) or column 5(c)) % la) Excess taxable income (b) Taxable income, or amount in column (a). d n, •r b lvnnt ( % (3) (1) % % ( Totals • _r J:..:a__a.._.e.ai.,ad deductions included in column 8 Enter here and on line 7, column (A). Part I, page 1. Enter here and on line 7, column (B). Part I, page 1. • 1 Name and address of controlled organizations) 2 Gross income from controlled organization(s) 3 Deductions of can[rolrnv organization directly connected with column 2 acorns (attach schedule) 4 Exempt controlled organizations la) Unrelated business taxable income (b) Taxable income computed as though not exempt under sac. 501(a). or the amount in col. (a). whichever a larger (c) column (a) divided by column (b) ( % (2) % ( (4) % 5 Nonexempt controlled organ ions 6 Gross income eportable (column 2 x column 4(c) or column 5(c)) 7 Allowable deductions (column 3 x column 4(c or column 5(c)) la) Excess taxable income (b) Taxable income, or amount in column (a). d n, •r b lvnnt Ic)Column (a) drvided by rnhnnn (hi (1) % (2) % ( % (4) Totals • Enter here and include on line 8, column (A), Part I, page 1. Enter here and include on line 8, column (B), Part I page 1. JSA S12MCUULC L.- nce. r un.....+..._ 1........... , ,,. -• • ,_•-- •_..__._. ._ (See instructions on p a gg 14.) 1 Description of property (1) (2) (3) D DEBT - FINANCED INCOME ( See instructions on page 15.) SCHEDULE F - INTEREST, ANNUITIES, ROYALTIES, AND RENTS FROM CONTROLLED ORGANIZATIONS 1E1630 1 •000 50F12E 1018 04/15/99 10:01:06 V707 10076381 23 1 Description of income New 2 Amount of income 3 Deductions directly connected 4 Set-asides fanach schedule) (attach schedule) 5 Total deductions and set-asides (col. 3 plus col 4) (1) 6 Expenses attributable to column 5 7 Excess exempt expenses (column 6 minus column 5. but not more than column 41. (1) (2) :.`si.'� (3) ( (4) Totals ► Enter here and on line 9, column A Part I, page 1. ) P 9 •;: ;;ti '''''': %:£?: ��x� ?' %��z<` .l ' Y ' .`,.a . 3 . E'[?a a .�o� a�.. " o:< ?!`O i<V ^� , 4Jeoo [ e> .. 2 JAN .?.: "S ,.;S:S <n:2�:i�.c...:`: [•:, »° �o< n„ 1:: o.<:.?.,, a.,< 28Yis @Y:b1$oj3:<an.oh}Z:. < ... .. .. Enter here and on 9, column B l ). Part . Par 1 page 1. 1 Description of exploited activity 2 Gross unrelated business income from trade or busin 3 Expenses directly connected with production of unrelated business income 4 Net income (loss) from unrelated trade or business (column 2 minus column 3). if a gain. compute cols. 5 through 7. 5 Gross income from activity that is not unrelated business income 6 Expenses attributable to column 5 7 Excess exempt expenses (column 6 minus column 5. but not more than column 41. (1) (2) :.`si.'� ( (3) (4) z' >:E?,a” e >?;8\ ?et;i €F E�;Z �� � U� a 2 a <;a. ``�.`,•`"> `3'" �"��` st�`� ` .kN. �" Enter here and on line ge, Pan II, page 1. (4 Column totals O Enter here and on 10, col. (A), Part I. page 1. Enter here and on line 10, col. (B), Pan I. page 1. .,'`a'ae yxa��;,Tw y� ' ' � �g ,�.., 'Y 2 . ?[:x::S'< �3'f5'a:` . ` `3�;° c�.aa i:` <Q:: hEwk, • line N: �r „wY+a'u :•17 • A CrP"<.ic ::<., Y -•, ,, '?3a.:c., ` y r5 `$i S <i v;,�S :� ° € x `xu� �a.b a .... � ;, , :?s...3a SCHEDULE K - COMPENSATION OF OFFICERS, DIRECTORS, AND TRUSTEES (See instructions on pag Enter here and on line 26, Part II, Pa9 e 1. 1 Name of periodical 2 Gross advertising income 3 Direct advertising costs 4 Advenbing gain or (loss) (col 2 m inor cot 3). If a gain. compute cols. 5 through 7. 5 Circulation income 6 Readership costs 7 Excess readership costs (column 6 minus column 6. but not more than column 41. (2) (2) :.`si.'� millstuat4W . i (4) z' >:E?,a” e >?;8\ ?et;i €F E�;Z �� � U� a 2 a <;a. ``�.`,•`"> `3'" �"��` st�`� ` .kN. �" Enter here and on line ge, Pan II, page 1. a ' M Column totals (carry to Pan II. line (5)) • Column totals, Pan II ► Enter here and on line 11, col. (A). Pa n L page 1. Enter here and on line 11, col (B). Part I, page L SCHEDULE K - COMPENSATION OF OFFICERS, DIRECTORS, AND TRUSTEES (See instructions on pag 17.) (1) (2) (3) i z' >:E?,a” e >?;8\ ?et;i €F E�;Z �� � U� a 2 a <;a. ``�.`,•`"> `3'" �"��` `i"':t <h' ,. , `Saaaxayrteet.,,,..,9t.14.. , a, ,.. a �s �.o'�`�.1 <3 `c ` � :(;i � .a, �" Enter here and on line ge, Pan II, page 1. Totals from Part Column totals, Pan II ► Enter here and on line 11, col. (A). Pa n L page 1. Enter here and on line 11, col (B). Part I, page L SCHEDULE K - COMPENSATION OF OFFICERS, DIRECTORS, AND TRUSTEES (See instructions on pag 17.) 1 Name 2 Title 3 Percent of time devoted to business 4Compensation attributable to unrelated business 96 96 Total • Enter here and on line 14, Part II, page 1 ► AA Form 9904 (1997) Page •• SCHEDULE G - INVESTMENT INgli E OF A SECTION 501(c)(7), (9), OR (17) GANIZATION • (See instructions ge 16.) SCHEDULE I - EXPLOITED EXEMPT ACTIVITY INCOME, OTHER THAN ADVERTISING INCOME See instructions on page 16.) SCHEDULE J - ADVERTISING INCOME (See instructions on page 17.) Part I Income From Periodicals Reported on a Consolidated Basis Part II Income From Periodicals Reported on a Separate Basis (For each periodical listed in Part II, fill in 7E1640 1.000 columns 2 through 7 on a line - by-line basis.) 50F12E 1018 04/15/99 10:01:06 V707 10076381 24 None end address of each member of the affiliated grow Employer identificetan number Tax period 3 Toranve tars (see instructions) { CPe�Ce a Overpayment craned twin pmot year .. b Estimated tea payments be the tot y Lass refund far the tax year y � a e he yea NtY• fa on Fonn 4466 4a e:? F3EIrrns r._— rnno : : :- o :asmr_ �ni•Tfi °.•mnwc _R -L•! _Kb:(_: ��. i -eP Pig _ -u_ " ' : t r : [ilgia ;.,FP :4. ?:tl ° j � nr Pgg giiicii'.l C - . n lti� �g•wr CgS.Y'•) :t:rr :t` ^,E =n nrtuc" - ^ • _ =; : :t "_ -_ = i y : U4. ; _ : - Y � 3 23.500 _ - -__� cio, - mil uiTga`ta�nu _ 3 u RP�'G�ui mow:9lia: :a i _ gEEl g RGi ('tt:JitY isit t E rat “ r i iui:� : :vuG Mb u. y nine 4. :. :a PP ill yva _F•[ti. . _ ..., i4t fli''_''R' {iR'tY1 c ill: "'IndiP fy'f [`'• • t :� ••l'RAt {: r. � L�_........ ��F. - -.- i .,.. _ r • •••.. - .. - Fu ....... :[ yy �� (( ttnu [ ti ;• •.. der le11t.e L.,ii1LL! ;F7''iii"" , - :., °Lwow., f e4.; ° - ;' 1; ', , se 23,500 4t ( ) tit . '1R3' :t :4.Y'i4llti•L���' se 1 ^ - -.--Y.:' 4d ' :fit : IL t:L •' e>_I- fgggRT tL'.sv : • LL an R4.0 let[: :: l4. :i�YSC- ••••_iF :3._ :__ 23,500 • Credit from regulated investment Companies 1 Creek la Federal tax to fuel 5 Tota Add lines 4d through 41 3 Barone. due. Subtract fine 5 from line 3. Deposit this amount electronically or Tax Deposit (FTD) Coupon (see inseucuons) se - 4f with a Federal b 23,500 8 None Y • vv. ei 1tw Application for Automatic Extension of Time persilern der Tyson Application File Corporation Income Tax Return anal ere Hue Sane m, 7004 are or oorporidoa Kapi'olani Medical Center for Woven and Children eme oe. a '. . •• or a /mee to meet lino loom a 55 Merchant Street, 24th Floor ry or pen. sys erne ZIP cede Honolulu, Hawaii 96813 Seca type of retort to be Net Farm 1120 Form 112014 Form 1120$ 5nmenre. - tk.d* pemroe, an" b*.t /ln fWMelO Farn 1120 -F3C Form 1t20}{ Faro 11204. taw. Klteot and • • . _ .. (Scrurcury el arks** a opera) Few Penerwnrk Reduatan Act Nance, an hnelrapban$. AZ /tE 3.1Vd E9ELSES9013 =n1 See Fain 112040 Form 1120PC Form 112DPOL ZOoV Form 112043W Fan 1120•R1C Form 11205 one 1120-F fiNrt Chock here if you do net have an office or piece of business in the United States _Execntive.Vic.e..2res4rIenr & CFO iTM& I Employer idwrtfi4tlon number 99- 0177350 Farm 1120-SF Form 990-C Form 990-T a 1 ra>ttest an aimomstic &month ter for serail corporations. 3- month) extension of tine anti May 17 . - 199 . to he The income tax ratan of the corporation named above fa ► C calendar year o r ► tax year beginning July 1 . 1997 •and ending June 30 • 199J b if this tax year is to less than 12 months. dtedc reason: n Ir>it r cram ! ^1 Final return 1 -'��� 1 Change in accounting period n Consolidated return to be filed ! It this application also corers subsidence to be included in a cortsohdatad rn'art complete the idloning 1 enure tn.t 1 leers been aunionnO M the altos000rrOd corporation to net tno aelicu t& and m tt e ben et ml encerreakre CAW No. 1$460233 fan 7004113H. 1 N2D Hd7IW2H I NV'10IdVM • 1.10eld 6C • 60 66- 60 -e1V1 PHARMACY REVENUE TO THE GENERAL PUBLIC • • ORGANIZATION'S PRIMARY UNRELATED BUSINESS ACTIVITY. 50F12E 1018 04/15/99 10:01:06 V707 10076381 STATEMENT 1 25 NAME AND FEIN OF PARENT CORPORATION KAPIOLANI SERVICE CORP. & SUBSIDIARIES 99- 0318588 • • 50F12E 1018 04/15/99 10:01:06 V707 10076381 STATEMENT 2 26 • • FORM 990T - PART II - LINE 28 - TOTAL OTHER DEDUCTIONS OVERHEAD ALLOCATION SUPPLIES SUBSCRIPTIONS OTHER EXPENSE PART II - LINE 28 - OTHER DEDUCTIONS 50F12E 1018 04/15/99 10:01:06 V707 10076381 132,063. 3,944. 350. 85. 136,442. STATEMENT 3 27 • Y � I w . TOTAL TAX DEPOSITS MADE • • FORM 990T - TAX DEPOSITED WITH EXTENSION TAX DEPOSITED WITH FORM 7004 50F12E 1018 04/15/99 10:01:06 V707 10076381 28 9,000 9,000 STATEMENT 4 CONTROLLED GROUP ELECTION STATEMENT ELECTION TO ALLOCATE $18,000 BUSINESS ASSET EXPENSE The undersigned corporation, component members of a controlled group of corporation, as defined in Internal Revenue Code § I79(d)(7), hereby consent to the apportionment plan listed below with respect to the taxable year of each corporation which includes June 30, 1998. ELECTION TO ALLOCATE $40,000 ALTERNATIVE MINIMUM TAX EXEMPTION The undersigned corporation, component members of a controlled group of corporation (within the meaning of Internal Revenue Code § 1563(a)), hereby consent under IRC §1.58-1(c)(3) to the apportionment plan listed below with respect to the taxable year of each corporation which includes June 30, 1998. ELECTION TO ALLOCATE $150,000 ALTERNATIVE MINIMUM TAX EXEMPTION The undersigned corporation, component members of a controlled group of corporation (within the meaning of Internal Revenue Code §1563(a)), hereby consent under IRC §1.58-1(c)(3) to the apportionment plan listed below with respect to the taxable year of each corporation which includes June 30, 1998. ELECTION TO ALLOCATE TAXABLE INCOME BRACKETS The undersigned corporation, component members of a controlled group of corporation (within the meaning of Internal Revenue Code § I563(a)), hereby consent under IRC § 1.58- 1(c)(3) to the apportionment plan listed below with respect to the taxable year of each corporation which includes June 30, 1998. ELECTION TO ALLOCATE ACCUMULATED EARNINGS CREDIT The undersigned corporation, component members of a controlled group of corporation (within the meaning of Internal Revenue Code §1563(a)), hereby consent under JRC §1.535 -3 to the apportionment plan listed below with respect to the taxable year of each corporation which includes June 30, 1998. Company Employer Number 1 99- 0318588 2 99- 0177350 3 99- 0274038 Apport. of Depr. Business Asset Expense None $18,000 None STATEMENT OF TAX BRACKET ALLOCATION Company Employer Number 1 99- 0318588 2 99- 0177350 3 99- 0274038 First $50,000 of Taxable Income None $50,000 None Apport. of $40,000 Alt. Min Tax Exemption None $40,000 None The amounts in each taxable income bracket in the tax table in IRC §11(b) have been allocated to the following corporations pursuant to §1.1563 -3(a) Taxable Taxable income over income over $50,000 but $75,000 but not over not over $75,000 $100,000 None None $25,000 $25,000 None None Apport. of $150,000 Alt. Min. Tax Exemption None $150,000 None Taxable income over $100,000 but not over $335,000 None $235,000 None Taxable income over $335,000 but not over $10,000,000 None $9,665,000 None • A , N IDENTIFICATION AND SIGNATURES: Company Employer Number 2 3 99- 0318588 99- 0177350 99- 02474038 • CONTROLLED GROUP ELECTION , TATEMENTS Name and Address Kapiolani Service Corp. & 06/30/98 Subsidiaries 55 Merchant Street, 24t Floor Honolulu, HI 96813 Kapiolani Medical Center for 06/30/98 Women and Children 55 Merchant Street, 24t Floor Honolulu, HI 96813 Kapiolani Medical Center at 06/30/98 Pali Momi 55 Merchant Street, 24 Floor Honolulu, HI 96813 • Taxable Signature and Title of Officer Year End • FORM N -7 0 N P STATE OF I-ODEPARTMENT OF TAXATION EXEMPT O BUSINESS • (REV. 1997) INCOME TAX RETURN • 1997 For calendar year 1997 or other taxable year beginning VV IYV I VYIl11L vIr .ahflo Li ,i• ,,,, v •■ • M Plea Sign Here • JULY 1 Name of organization ICAPI IOLANI MEDICAL CENTER FOR WOMEN AND CHILDREN , 1997 and ending • JUNE 30 , 19 98 IAMD I UNP 1 008 I PNT I INT • A Federal Employer I.D. No. Dba or C/O Address (number and street) 55 MERCHANT STREET, 24TH FLOOR City or town. State and ZIP code HONOLULU, HI 96813 ATTACH A COPY OF FEDERAL FORM 990 -T TO THIS RETURN ENTER APPROPRIATE AMOUNTS FROM FEDERAL FORM 990-T 1 Gross receipts or sales 2 Returns and allowances 3 Cost of goods sold and /or operations 4 Capital gain net income 6 Other income 6 Total unrelated trade or business income 7 Total deductions 8 Unrelated business taxable income Organizations Taxable as Corporations (See Instructions for Tax Computation) 9 Tax - From TAX COMPUTATION SCHEDULE on page 2, Part I, line 5 Trusts Taxable at Trust Rates (Sea Instructions for Tax Computation) 10 Tax -From TAX COMPUTATION SCHEDULE on page 2, Pan II, line 10 11 Recapture of Capital Goods Excise Tax Credit from Form N-312. Part II (attach Form N -312) 12 Total tax ladd lines 9 or 10 and 11) Paid Preparer s Information Preparer's Signature Finn's name Or yours d sell-employed) and address 13(a) • 13(6) 13(c) • 13(d) 13(e) • 99 0177350 • B Hawaii G.E. /Use I.D. No. 10141495 C This organization is a (check one): 1 • 2 • 3 • 4 • 6 • 6 • 7 • 8 9 • 10 • 11 12 14 • 875,802. 600,723. 275,079. 313,918. - 38,839. 0. 0. 13 (a) Credit for Energy Conservation (attach Form N-157 or N-306) (b) Credit for income tax paid to • state or foreign country by a resident estate or trust (c) Enterprise Zone Tax Credit (attach Form x-756) (d) Low-Income Housing Tax Credit (attach Form N -586) (•) Credit for Employment of Vocational Rehabilitation Rebmb (attach Form 14884) 14 Total (add line 13(a) through 13(e)) 16 Difference - line 12 minus line 14 (but not less than zero) 16 Credits and payments: (a) 1996 overpayment credited to 1997 (b) Estimated tax payments (c) Tax paid with automatic extension of time to (de (attach Form N or 14301) (d) Credit of shareholder of regulated investment company (e) Capital Goods Excise Tax Credit (attach Form N-312) (f) Fuel Tax Credit for Commercial Fishers (attach Form N-308 or N -1634) (9) Motion Picture and Film Production Income Tax Credit (attach Form (6316) (hl Hotel Remodeling Tax Credit (attach Form 14314) (i) Total credits and payments (add lines 16(a) through 16(h)) 17 Estimated tax penalty (see Instructions). Check One: I I Form N-210 I Form 14220 18 TAX DUE • If line 16(g) is less than the total of lines 15 and 17, enter amount owed (see Instructions) 19 OVERPAYMENT - line 16(g) is larger than the total of lines 15 and 17, enter amount overpaid 20 Amount of Tine 19 •u want Credited to 1998 estimated tax X R efunded 20 (a) S S. 21303 . ra, utter IT � at t a rru m •Inp any accompanying • Si or miners ta a •n axons ma • -.tit • • (limy knowledge rman good faith, to the taxabler natl. wsuanr to the Wwai�1 /1/I��jr11 /• Tax t Gilmour 235, W6 • Signature o officer Date Title 5,500- 17 0. 18 0. 19 5,500. ' ERNST & YOUNG LLP - 1001 BISHOP STREET f' 34- 6565596 2400 PAUAHI TOWER, HONOLULU, HI ZIP CODE ►96813 Date Check it Preparers social securty number 7 /) / f 3 ' se6<mpbyed I I 220 - - 0097 ust FORM N -70NP k3 "_ - - =: `` -- 16(6)1 4,000. x- _ -- 16(c) • 1,500- r,„-• 16(d) 16(e) • R:, - =i 16(f) • tee `"�L'• -3 '_�I _ =^ +F .- -sue° ,t.--t ,, 16181 • 161h) • • FORM N -7 0 N P STATE OF I-ODEPARTMENT OF TAXATION EXEMPT O BUSINESS • (REV. 1997) INCOME TAX RETURN • 1997 For calendar year 1997 or other taxable year beginning VV IYV I VYIl11L vIr .ahflo Li ,i• ,,,, v •■ • M Plea Sign Here • JULY 1 Name of organization ICAPI IOLANI MEDICAL CENTER FOR WOMEN AND CHILDREN , 1997 and ending • JUNE 30 , 19 98 IAMD I UNP 1 008 I PNT I INT • A Federal Employer I.D. No. Dba or C/O Address (number and street) 55 MERCHANT STREET, 24TH FLOOR City or town. State and ZIP code HONOLULU, HI 96813 ATTACH A COPY OF FEDERAL FORM 990 -T TO THIS RETURN ENTER APPROPRIATE AMOUNTS FROM FEDERAL FORM 990-T 1 Gross receipts or sales 2 Returns and allowances 3 Cost of goods sold and /or operations 4 Capital gain net income 6 Other income 6 Total unrelated trade or business income 7 Total deductions 8 Unrelated business taxable income Organizations Taxable as Corporations (See Instructions for Tax Computation) 9 Tax - From TAX COMPUTATION SCHEDULE on page 2, Part I, line 5 Trusts Taxable at Trust Rates (Sea Instructions for Tax Computation) 10 Tax -From TAX COMPUTATION SCHEDULE on page 2, Pan II, line 10 11 Recapture of Capital Goods Excise Tax Credit from Form N-312. Part II (attach Form N -312) 12 Total tax ladd lines 9 or 10 and 11) Paid Preparer s Information Preparer's Signature Finn's name Or yours d sell-employed) and address 13(a) • 13(6) 13(c) • 13(d) 13(e) • 99 0177350 • B Hawaii G.E. /Use I.D. No. 10141495 C This organization is a (check one): 1 • 2 • 3 • 4 • 6 • 6 • 7 • 8 9 • 10 • 11 12 14 • 875,802. 600,723. 275,079. 313,918. - 38,839. 0. 0. 13 (a) Credit for Energy Conservation (attach Form N-157 or N-306) (b) Credit for income tax paid to • state or foreign country by a resident estate or trust (c) Enterprise Zone Tax Credit (attach Form x-756) (d) Low-Income Housing Tax Credit (attach Form N -586) (•) Credit for Employment of Vocational Rehabilitation Rebmb (attach Form 14884) 14 Total (add line 13(a) through 13(e)) 16 Difference - line 12 minus line 14 (but not less than zero) 16 Credits and payments: (a) 1996 overpayment credited to 1997 (b) Estimated tax payments (c) Tax paid with automatic extension of time to (de (attach Form N or 14301) (d) Credit of shareholder of regulated investment company (e) Capital Goods Excise Tax Credit (attach Form N-312) (f) Fuel Tax Credit for Commercial Fishers (attach Form N-308 or N -1634) (9) Motion Picture and Film Production Income Tax Credit (attach Form (6316) (hl Hotel Remodeling Tax Credit (attach Form 14314) (i) Total credits and payments (add lines 16(a) through 16(h)) 17 Estimated tax penalty (see Instructions). Check One: I I Form N-210 I Form 14220 18 TAX DUE • If line 16(g) is less than the total of lines 15 and 17, enter amount owed (see Instructions) 19 OVERPAYMENT - line 16(g) is larger than the total of lines 15 and 17, enter amount overpaid 20 Amount of Tine 19 •u want Credited to 1998 estimated tax X R efunded 20 (a) S S. 21303 . ra, utter IT � at t a rru m •Inp any accompanying • Si or miners ta a •n axons ma • -.tit • • (limy knowledge rman good faith, to the taxabler natl. wsuanr to the Wwai�1 /1/I��jr11 /• Tax t Gilmour 235, W6 • Signature o officer Date Title 5,500- 17 0. 18 0. 19 5,500. ' ERNST & YOUNG LLP - 1001 BISHOP STREET f' 34- 6565596 2400 PAUAHI TOWER, HONOLULU, HI ZIP CODE ►96813 Date Check it Preparers social securty number 7 /) / f 3 ' se6<mpbyed I I 220 - - 0097 ust FORM N -70NP e M • 1W13421.000 Form N -70NP (REV. 1997) TAX COMPUTATION SCHEDULE PART I 4 (a) (b) 1 Unrelated 2 - Corporations (iii) Over $100.000 • Enter 6.4% of line 3 $ • 1 Enter the amount of unrelated business taxable income as shown on page 1, line 8 2 Enter the amount of taxable net capital gain as shown on page 1, line 4 3 Line 1 minus line 2 (if less than zero, enter zero) Tax on net capital gain - 4% of amount on line 2 Tax on all other taxable income • If amount on line 3 is: (i) Not over $25,000 • Enter 4.4% of line 3 (ii) Over $25,000 but not over $100,000 - Enter 5.4% of line 3 $ . Subtract If the taxable income is: Not over $1,500 Over $1,500 but not over $2,500 Over $2,500 but not over $3,500 Over $3,500 but not over $5,500 Over $5,500 but not over $10,500 Over $10,500 Over $15,500 Over $20,500 but not over $15,500 but not over $20,500 $250 and enter difference . Subtract $1,250 and enter difference TRUST TAX RATES • (c) Total of lines 4(a) and 4(b). (d) Using the rates listed on line 4(b), compute tax on unrelated business taxable income as shown on line 1. 6 Total tax (enter lesser of amount on line 4(c) or 4(d)) Also, enter this amount on pegs 1. line 9. - Charitable Trusts business taxable income (page 1, line 8) Net capital gain taxable to the trust. Enter the smaller of line 16 or 17, col. (b), Schedule D (Form N-40) If this line is zero, GO TO LINE 9 3 Difference • line 1 minus line 2 4 Enter the greater of line 3 or $3,500 6 Tax on amount on line 4. If line 4 is $3,500, enter $130.00 6 Difference • line 1 minus line 4 7 Multiply the amount on line 6 by 7,25% 8 Tax. Add lines 5 and 7 9 Tax on amount on line 1 above 10 Enter the lesser of line 8 or line 9 here and on page 1, line 10 The tax rate shall be: 2% of taxable income $30.00 plus 4% of excess over $1,500 $70.00 plus 6% of excess over $2,500 $130.00 plus L25% of excess over $3,500 Page 2 1 2 3 4 (a) 41b)li) 4 (b)(ii) 41b)liii) 4(c) 4(d) 6 - 38,839. 0. - 38,839. 0. 0. 0. 0. 0. 0. 0. 1 2 3 4 6 6 7 8 9 10 $275.00 plus 8% of excess over $5,500 $675.00 plus 8.75% of excess over $10,500 $1,112.50 plus 9.5% of excess over $16,500 $1 587 50 plus 10% of excess over $20,500 • a C/O 102011000 STATE OF HAWAII - D V OF TAXATION • lb1 APPLICATION FOR OMATIC EXTENSION :O1 OF TIME TO FILE 1x97) HAWAII CORPORATION INCOME TAX RETURN Onaadn• R .* of Forms N30. N46. N -7CelP and $310) in year se for (en than 12 months. *ma sees== Sad mum 0 Facer teem Over in accounting psiod aaa°nd en au expasaan Kapi Medical Center for Women dynastic smite. had income an batty M to Inaba an (Yen may esanata this anmoant) NOTE You must es an amass on dro 3.0 you do not sweet at owe tax. •poor tans 10) Chet Wets amooted m *manta (man. wfot year's wel pron•t ataxaad ea cn&U Other faxelrh 13/93 SOVd Ate4 e- -1(^ n eensokanha reme to be fibd ZSCLSEseos aI and Children 4,000 1 W rxyr a,Nhe an aw ... N 1 urea j Goa I nu - Finn I • Lit ALJKTFA. *mew., 99- 0177350 Faded F•••e' lae,m aeon Maehe. Haws G.L the Ilona amen Nontr 10141 Sou (Aanee and Set) 55 Merchant Street, 24th Floor • at hewn. Son. eat ZIP sour Honolulu, Hawaii 96813 k type of return to be gibed: • Fenn � • U Form N45 *Whom N 10h1P •U Form N310 (plea! bas Ra I • 0 you do not ban an office a Mom d business a tenni) wow an automat &month ananica at tan to 6a to imam lam roue d to tee* awned above ler (fir in only anal CALENDAR YE AR • 1g OR TAX YEAR ENDING • June 30 . 98 we ear ecolicsdee ako coos subsithetba to S aMaded in a consolidated name) . .n al dm Waned VIM f •yet• ads a In p,swip Me roma Shea and Federal tomb t s Isaacson Number of each meats 5,500 V `e. . ! A {yN yule,„ 0,1- ..!?;;fi5 {�{. -+�.,r•.. Other p._ and Pads tan awe . ..t) Tote) (add Ines 4 end 6) Incense to balance dot F S nantr ire 6$. Pry in +w she this tore 111. 7 • 1,500 mom an ice 7 in tuL MOO dole a money ads tor feat amount payable to 'tlawai SASS la CoO.ctort Wdm yore Federal Enteleis imfieatos Number, the table yea, and "Fate tazor on t Pat it US data dawn m US bent DECLARATION decant ads to pettdder eat lath b ateten 23136 tiRS that the s . . - cteaiod herr are ea. and coma std that nave Iwo tud d • ••••••••• *Sty to wee this wpliatea all hose box took Ace suits el Ow cerpeallan a cater way. A Soda /', sews a an Mat tepeetarvhp the fadadsy or main ad an assap% WWI a argaa •ht• Mlle Ran N-X38. An floated awn Wei maw d massy. 6 4, 000 Oi 3(e Date REASONS FOR REJECTION OF EXTENSION• 1. Itasstes for to sa aim is opt *mad by the =Weyer a hb dal aufba Ted agent 2. The nest twat not in this cf&ce or marled an or baton the data wasc led by taw ter fling emu oven a s , to wawa are r fired ba dads type of tea and fa each taxpayer involved. 4 The exaea in return was not filed Within the tene suedfied by the flat extension. FORM N401 1p7V N3D HS7VsH INV70IdV)I'NOdd Cb•60 BS-BO-NV/4 THE COPY OF THIS RETURN FILED WITH THE STATE CONTAINED A COPY OF THE TAXPAYER'S FEDERAL RETURN (FORM 990 -T).