About Us - Children`s Miracle Network Hospitals

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Children’s Miracle Network
2008 Annual Report
2 | Celebration 2008
Contents
Chairman Message
4
Background and Partners
5
Leadership
6
Mission
7
2008 Hospital Highlights
8
Media Partners
9
Corporate Partners
10
2008 Fundraising Highlights
11
2008 Fundraising Total
12
2008 Year in Review
13
2008 Hospital Fundraising Totals
15
Total Children’s Miracle Network Support
19
Endowment Donors
20
The Impact of Hospitals
21
2008 Financial Statements
22
Children’s Miracle Network’s mission is to generate funds
and awareness programs in partnership with and for
the benefit of member hospitals/foundations and
the children they are privileged to serve.
2008 Annual Report | 3
Chairman Message
Mario Pilozzi
Chairman
Board of Trustees
Helping children to overcome the odds is what Children’s Miracle Network is all about...the odds of disease
and illness, the potential for death from a preventable accident, and the possibility of a serious injury. Our
organization has the best odds to reach out to million of kids and their families, providing tangible help
through the hospitals that serve kids and raising the awareness of all those who can give voice to the needs of
our children.
Children’s Miracle Network would like to see every year become a landmark year for children. This is the
reason we exist: to help children—all children. And we continually strive to improve so we can better fulfill
this mission. I’m proud to report that Children’s Miracle Network made significant progress during 2008.
For example:
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Through the compassionate efforts of countless individuals, sponsors and media partners, Children’s
Miracle Network raised $243 million for children’s hospitals, a remarkable feat in the current economy.
According to an unaided awareness survey, Children’s Miracle Network is the sixth most recognized
children’s charity in North America.
Children’s Miracle Network is ranked first when it comes to the overall number of children impacted by
its fundraising each year—17 million.
National fundraising programs like Radiothon, Telethon, Dance Marathon and Direct Mail increased by
4 percent in 2008.
But to focus on our achievements—as impressive as they are—misses the point. There is much more to
be done. Many families are suffering financially. Parents devastated by sudden loss of income are often
postponing care that could prevent an illness—simply because they can’t afford a doctor’s visit or a needed
prescription. As a result, about half of all children’s hospitals are seeing an increase in emergency visits.
What’s more, 70 percent of children’s hospitals have had to give more charity care and take on more debt.
And yet 57 percent of hospitals are receiving fewer charitable contributions—the money just isn’t coming in
fast enough to help all children who need miracles.
Our goal is to meet the needs of children’s hospitals by cultivating more partnerships, initiating more gifts and
providing more funds for the care of children throughout the world. This report gives you a brief snapshot of
our successes in 2008 and how we are aligning ourselves to provide more value to more children in the future.
4 | 2008 Annual Report
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Background and Partners
5 | Children’s Miracle Network | 2008 Annual Fundraising Report
Children’s Miracle Network | 2008 Annual Fundraising Report | 5
Leadership
Board Of Trustees
Mario Pilozzi (Chair)
Dianna Morgan
Tom Sargent
Jim Shmerling, DHA
John Bozard
Jimmy Alexander
Jon Vice
Steven Altschuler, MD
Mr. John Bel
Don Black
Kevin Churchwell, MD
Nana Mensah
Ora Pescovitz, MD
Marie Osmond
Jimmy Osmond
John Schneider
Ken Potrock
Tom Sullivan
Steve Weisz
President & CEO (Retired), Wal-Mart Canada Corp.
Senior Vice President, Public Affairs (Retired), Walt Disney World Company
President & CEO, First Technology Credit Union
President & CEO, The Children’s Hospital, Denver
President, Arnold Palmer Medical Center/Foundation
Vice President, Human Resources, Ace Hardware
President & CEO (Retired), Children’s Health System of Wisconsin, Inc.
President & CEO, The Children’s Hospital of Philadelphia
President, Arkansas Children’s Hospital Foundation
President & CEO, Child Health Corporation of America
CEO & Executive Director, Monroe Carell, Jr., Children’s Hospital at Vanderbilt
Chairman & CEO , ‘XPORTS, INC.
President & CEO, Riley Hospital For Children
Co-Founder, Children’s Miracle Network
Co-Founder, Children’s Miracle Network
Senior Vice President, Sports Enterprises, Walt Disney Parks & Resorts
President, Children’s Memorial Foundation
President, Marriott Vacation Club International
Executive Staff
Scott J. Burt John Hartman
Brian Hazelgren
Claire Richards
Craig Sorensen
President & Chief Executive Officer
Chief International Officer
Chief Development Officer
Chief Financial Officer
Chief Marketing Officer
International Headquarters
205 West 700 South
Salt Lake City, Utah 84101
PHONE: 801-214-7400
FAX: 801-746-6688
ChildrensMiracleNetwork.org
Mission
Children’s Miracle Network’s mission is to generate funds and awareness
programs in partnership with and for the benefit of member hospitals/
foundations and the children they are privileged to serve.
Children’s Miracle Network is an international non-profit organization that raises funds for more than 170
children’s hospitals. Countless individuals, organizations and media partners unite with Children’s Miracle
Network hospitals to help sick and injured kids in local communities. Donations to Children’s Miracle Network
create miracles by funding medical care, research and education that save and improve the lives of 17 million
children each year.
Partner Hospitals
Children’s Miracle Network raises funds for its member hospitals to use in addressing the most critical children’s
health care needs in their respective communities. Funds raised through Children’s Miracle Network for its 170
children’s hospitals are provided to each hospital solely as discretionary funds.
Through these hospitals, Children’s Miracle Network funds are used for a wide variety of hospital programs and
services. A sampling of these programs and services includes:
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Pediatric research for cancer treatments
Sickle cell anemia and juvenile diabetes treatment
Critical and urgent care units
Pediatric and neonatal intensive care support
Staffing and medical training to meet children’s unique health care needs
Life-flight helicopters and other emergency vehicles
Capital expansion of existing facilities to meet children’s medical needs in a given area
Community outreach, prevention and awareness programs ranging from immunizations and childhood obesity
education to bicycle safety clinics and accident prevention programs
In 2008 more than $243 million was raised under the Children’s Miracle Network umbrella to support these and
other programs and services administered by member children’s hospitals.
The Medical Center
2008 Hospital Highlights
Children’s Miracle Network funds are used to ensure that children’s hospitals have the resources they
need 24 hours a day, 365 days a year. Here are some examples of how Children’s Miracle Network funds
are used to provide specialized pediatric care.
Just three days after birth, 4-year-old
Atticus went into cardiac arrest. He
faced several complications: kidney
and liver problems, brain damage and
a serious lung condition. Atticus finally
received a heart transplant and began
to heal. Children’s Miracle Network
funds helped pay for surgeries, inpatient care, and the heart-lung
machine that kept him alive.
A life-support
machine
for a child
needing a heart
transplant costs
approximately
*$60,000.
After choosing to undergo a risky
bone marrow transplant, 14-year-old
Kimmi was the first patient at her
hospital and one of only 100 children
to be cured of sickle cell anemia, a
lifelong disorder that causes constant
pain and organ damage. Donations
to Children’s Miracle Network helped
fund research for the procedure that is
saving more children’s lives.
A bone marrow
transplant costs
approximately
*$223,000.
Katie was in a plane crash and was
transported by ambulance to her
closest children’s hospital. After
months of surgeries and therapy,
17-year-old Katie made an amazing
recovery. Children’s Miracle Network
funded the recreational therapy
program that kept her motivated and
positive through it all. Said Katie, “The
most important lesson I learned is that
accidents happen, but so do miracles.”
A specialized
pediatric
ambulance
costs up to
*$350,000.
* Stated in U.S. Dollars
Media Partners
Television and radio stations around
the world help raise awareness and
funds for children’s hospitals.
Pictured to the left are cancer
survivor A.J. Stinger of Marion, Ind.,
and football legend Steve Young as
they chat with radio stations during
the Children’s Miracle Network
Celebration event in Walt Disney
World.
Boogie, on-air talent from Radio Forth, and Kyle, a
patient at the Royal Hospital for Sick Children, play
an intense game of virtual tennis during the station’s
2008 Radiothon in Edinburgh, Scotland.
Cancer survivor and former patient of Baptist
St. Anthony’s Health System, 8-year-old Hannah
works the phone banks during the KMXJ Mix 94.1
Radiothon in Amarillo, Texas.
WGAL-TV8 anchors and reporters hosted the 13hour Children’s Miracle Network Telethon from the
WITF Public Media Center in Harrisburg, Pa.
Corporate Partners
The 17 million kids treated at 170 Children’s Miracle Network hospitals would like to
thank the generous corporate partners who have made miracles happen in their lives.
For
Children’s Miracle Network®
M I L E S
®
International
F O R
M I R A C L E S
Fundraising Highlights
Children’s Miracle Network | 2008 Annual Fundraising Report | 11
2008 Fundraising Total
2008 Total
$243,398,135
2008: A Year In Review
JANUARY
JANUARY
FEBRUARY
Miss America 2008 Kirsten Haglund
became a Goodwill Ambassador.
Children’s Miracle Network is the
national platform of the Miss
America organization.
MARCH
IHOP gave away about 1.5 million
pancakes and raised more than
$640,000 on National Pancake Day.
Throughout 2008 Speedway
SuperAmerica raised $3 million,
doubling its 2007 total.
MARCH
Champions Across the United
Kingdom and Ireland attended
Celebration for the first time.
Champions Across America met
President Bush. Champions Across
Canada were invited to Canadian
Idol and a special NHL practice.
APRIL
All year, Marriott properties worked
together to raise $5 million. The
Courtyard by Marriott’s Breakfast
Campaign raised $714,043.
Good Morning America visited
Celebration and interviewed The
Osmonds in celebration of their
50th Anniversary.
Proceeds from the 2008 McLane
Company golf tournament funded
convenience store Corporate Direct
costs, which generated more than
$2 million for hospitals.
The SickKids Foundation Toronto
Radiothon raised $4 million,
making it the largest Radiothon
in the world. Foresters’ support
of Radiothon helped bring the
combined Radiothon total to more
than $330 million.
In the United States, Walmart and
Sam’s Club associates, members and
customers raised $10 million in May.
The 3rd annual XM Kids Traveling
Roadshow culminated in a kid’s
concert in Washington, D.C.
ODL Securities, based in London,
UK, held its first-ever “Trading Day,”
donating all trading fees, raising
more than £200,000.
The “It Matters” sponsor recognition
campaign ran in 90 markets.
Three Costco Canada warehouses
raised $100,000 in 31 days, helping
Costco raise more than $4.5 million
in Canada.
APRIL
In just 30 days, Credit Unions for
Kids raised more than $1.5 million.
Overall fundraising increased by $1
million in 2008.
Delta Air Lines honored caregivers
at the Children’s Miracle Awards.
MAY
FEBRUARY
JUNE
JUNE
The Celebration broadcast reached
100 million TV households.
MAY
The Walmart Walk for Miracles
raised almost $1.6 million in 12
cities across Canada.
The Mike Weir Miracle Golf Drive
for Kids generated nearly $1.1
million for a new children’s hospital
in Saskatchewan.
Spring Radiothons in Ireland
generated more than €600,000.
U.S. News and World Report
recognized 22 Children’s Miracle
Network hospitals and included
a section highlighting Children’s
Miracle Network.
Rite Aid’s executive car wash raised
$200,000.
The GOLF CHANNEL broadcasted
the 11th Annual Ace Hardware Golf
Shootout, which raised $845,000.
JULY
JULY
AUGUST
As OAAA’s charity of choice,
billboards across the U.S. increased
visibility and brand awareness.
Dairy Queen’s Miracle Treat Day
raised an estimated $4.7 million—
the highest amount raised on a
single day in Children’s Miracle
Network history. Dairy Queen
Canada generated more than $1.9
million of the total.
The Giant Food Stores Our Kids Golf
Tournament raised more than $1.25
million at 12 golf courses.
Alabama’s Log A Load for Kids
raised $130,000 from “Kayaking for
Kids,” a 330-mile kayak trip down
the Alabama River.
CDW coworkers contributed more
than $160,000 through Miracle
Jeans Day donations.
Tide Victory Lap/Walmart NASCAR
Series champions Andrew Ranger
and Alex Tagliani went on a 15-city
road circuit race series. Since 2003,
it has generated nearly $750,000.
SEPTEMBER
SEPTEMBER
The first-ever Scotland Radiothon
raised approximately £85,000.
The “Racing for a Miracle”
campaign, in association with the
Ace Hardware Foundation, Stanley
Tools and NASCAR driver Elliot
Sadler, garnered publicity worth
$720,988.
OCTOBER
OCTOBER
supporters walked, ran and cycled
6,700 miles from Chicago to Los
Angeles during the annual
Torch Relay and raised $1 million.
Ne-Yo and Jon McLaughlin
performed at the “Tiki Rocks the
Square” fundraiser in New York
City, which generated 78 million
media impressions.
Winners of the GOLF CHANNEL’s
Big Break X: Michigan gave a $10,000
donation to Sparrow Hospital in
Michigan.
Love’s Travel Stops & Country Stores
raised $760,000, an increase of 75
percent over its 2007 total.
First Student Canada reached a new
milestone—$1 million raised for
Children’s Miracle Network.
Air Canada Kids’ Horizons
partnered with CTV celebrity Marci
Ien and placed globes to collect
loose change at Toronto and
Quebec City International Airports.
Pringles launched the “Can
Creator.” For every created can,
Pringles donated $1 to Children’s
Miracle Network.
NOVEMBER
NOVEMBER
AUGUST
DECEMBER
DECEMBER
Indiana University’s Dance
Marathon broke all records and
raised $1,376,550.
Rumba 100.3’s Hispanic Radiothon
in Orlando, Fla., raised $351,297.
Hispanic Radiothon efforts continue
to grow.
The Children’s Miracle Network
Classic presented by Walmart was
broadcast on the GOLF CHANNEL.
The first Radiothon in Australia
raised more than $123,000 (AUD).
Nearly 200 Swiss Chalet restaurants
in Canada raised more than
$236,000 on Miracle Kids’ Day.
Microsoft produced a family game
pack for XBOX 360 and donated
100 percent of net proceeds. Other
packaged goods partnerships are
increasing.
Microsoft Canada announced the
extension of its year-round support
of the CLICK program in the IWK
Health Centre and Atlantic Canada,
letting hospitalized children stay
connected with the outside world.
Panda Restaurant Group’s
Workplace Giving totals increased
by 76 percent. Workplace Giving
campaigns continue to gain
momentum.
RE/MAX raised $8.3 million in
the U.S. and Canada through the
Miracle Home® program and other
fundraisers.
Hospital Fundraising Totals
U.S. Market
In 2008 Walmart stores
in the Atlanta area
funded the Walmart
& Sam’s Club ground
transportation
vehicle for Children’s
Healthcare of Atlanta.
The emergency vehicle
is equipped with the
latest technologies
and equipment,
ensuring that children
throughout the area
have access to lifesaving care at every
moment.
Hospital Name
Total
Abilene-Sweetwater
Hendrick Medical Center
$ 820,456
Akron
Akron Children's Hospital
1,876,081
Albany, GA
Phoebe Putney Memorial Hospital
Albany-Schenectady-Troy
Children's Hospital at Albany Medical Center
Albuquerque-Santa Fe
UNM Children's Hospital
197,242
689,200
1,213,087
Alexandria, LA
CHRISTUS St. Frances Cabrini Hospital
566,780
Amarillo
Baptist St. Anthony's Health System
342,818
Anchorage
The Children's Hospital at Providence
473,420
Atlanta
Children's Healthcare of Atlanta
Augusta
Medical College of Georgia Children's Medical Center
4,702,420
Austin
Dell Children's Medical Center of Central Texas
Bakersfield
Bakersfield Memorial Hospital
Baltimore
Johns Hopkins Children's Center
Bangor
The Acadia Hospital, The Aroostook Medical Center, Inland
Hospital, Blue Hill Memorial Hospital, Sebasticook Valley
Hospital, C.A. Dean Memorial Hospital, Eastern Maine
Medical Center
441,826
1,220,740
393,925
2,306,015
Baton Rouge
Our Lady of the Lake Children's Hospital
Beaumont-Port Arthur
CHRISTUS Jasper Memorial Hospital, CHRISTUS Hospital - St.
Elizabeth, CHRISTUS Hospital - St. Mary
558,155
1,654,992
405,705
Birmingham
Children's Hospital of Alabama
1,716,808
Boise
St. Luke's Children's Hospital
1,071,701
Boston
Children's Hospital Boston
2,547,407
Buffalo
Women & Children's Hospital of Buffalo
1,515,989
Burlington-Plattsburgh
Vermont Children's Hospital at Fletcher Allen Health Care
Cedar Rapids
University of Iowa Children's Hospital
Champaign-Springfield
St. John's Children's Hospital
551,270
3,273,153
755,069
Charleston, SC
Medical University of South Carolina Children's Hospital
Charleston-Huntington
West Virginia University Children's Hospital
2,022,095
Charlotte
Levine Children's Hospital
2,247,160
Charlottesville
University of Virginia Children's Hospital
Chattanooga
T.C. Thompson Children's Hospital
Chicago
Children's Memorial Hospital
433,008
362,106
509,447
6,678,765
Cincinnati
Cincinnati Children's Hospital Medical Center
Cleveland
Rainbow Babies & Children's Hospital
Columbia, SC
Palmetto Health Children's Hospital
838,100
1,187,043
671,214
Columbia-Jefferson City
MU Children's Hospital
386,819
Columbus, GA
The Medical Center
587,779
Columbus, OH
Nationwide Children's Hospital
Corpus Christi
Driscoll Children's Hospital
Dallas
Children's Medical Center
1,310,713
720,002
1,360,718
Dayton
The Children's Medical Center
1,083,469
Denver
The Children's Hospital
3,794,752
2,029,677
Detroit
Beaumont Hospital
El Paso
University Medical Center Foundation
184,988
Elmira
Arnot Ogden Medical Center
339,099
Erie
Saint Vincent Health Center
Eugene
Sacred Heart Medical Center
194,545
1,164,545
U.S. Market
Hospital Name
Total
Fargo-Valley City
MeritCare Children's Hospital
Flint-Saginaw-Bay City
Hurley Medical Center
$ 745,383
968,202
Florence-Myrtle Beach
McLeod Children's Hospital
529,561
Fresno-Visalia
Children's Hospital Central California
1,542,433
Ft. Worth
Cook Children's Medical Center
1,144,937
Gainesville-Daytona Beach
Shands Children's Hospital at the University of Florida
2,350,670
Grand Rapids
Helen DeVos Children's Hospital
1,109,807
Greenville, NC
University Health Systems Children's Hospital
1,378,440
Greenville, SC
Children’s Hospital of Greenville Hospital System University
Medical Center
Harrisburg-Lancaster
Penn State Hershey Children's Hospital at Penn State
Hershey Medical Center
863,028
3,312,790
Hartford-New Haven
Connecticut Children's Medical Center
929,312
Helena
Shodair Children's Hospital
501,525
Honolulu
Kapi'olani Medical Center for Women & Children
Houston
Texas Children's Hospital
2,577,853
831,800
Indianapolis
Riley Hospital for Children
5,086,897
Jackson, MS
Blair E. Batson Hospital for Children at the University of
Mississippi Medical Center
914,552
Jacksonville-Brunswick
UF & Shands Jacksonville
879,275
Joplin-Pittsburg
Freeman Health System
736,343
Kansas City
KU Medical Center, Children's Mercy Hospitals and Clinics
1,605,447
Knoxville
East Tennessee Children's Hospital
1,860,776
La Crosse-Eau Claire
Gundersen Lutheran Health System
1,218,165
Lake Charles
CHRISTUS St. Patrick Hospital
531,244
Lansing
Sparrow Hospital
669,908
Las Vegas
St. Rose Dominican Hospitals
967,315
Lexington
Kentucky Children's Hospital
725,171
Little Rock-Pine Bluff
Arkansas Children's Hospital
3,718,912
4,751,563
Los Angeles
Childrens Hospital Los Angeles
Louisville
Kosair Children's Hospital
Lubbock
UMC Children's Hospital
Macon
The Children's Hospital at the Medical Center of Central
Georgia
558,798
1,024,889
431,770
Medford-Klamath Falls
Rogue Valley Medical Center
453,887
Memphis
Le Bonheur Children's Medical Center
912,493
Miami-Ft. Lauderdale
Miami Children's Hospital
1,186,964
Milwaukee
Children's Hospital of Wisconsin
5,686,588
Minneapolis-St. Paul
Gillette Children's Specialty Healthcare
2,505,135
Mobile
University of South Alabama Children's & Women's Hospital
478,118
Monterey-Salinas
Salinas Valley Memorial Hospital
373,746
Nashville
Monroe Carell Jr. Children's Hospital at Vanderbilt
1,550,608
New Orleans
Children's Hospital - New Orleans
1,517,248
New York
Children's Specialized Hospital, The Bristol-Myers Squibb
Children's Hospital at Robert Wood Johnson University
Hospital, Schneider Children's Hospital a member of the
North Shore-LIJ Health System, Maria Fareri Children's
Hospital at Westchester Medical Center, The Children’s
Hospital at Montefiore
3,127,461
Norfolk-Portsmouth
Children's Hospital of The King's Daughters
1,405,710
Costco Wholesale
locations throughout
the state of Hawaii
raised $238,376 during
the 2008 Miracle
Month of May balloon
campaign. The funds
raised exceeded
the goal needed
to purchase a new
ultrasound machine
for the Kapi`olani
Medical Center for
Women & Children
Fetal Diagnostic
Center. Because of
the additional funds,
the hospital was also
able to fund an update
of older ultrasound
machines.
U.S. Market
Rainbow Babies &
Children’s Hospital
dedicated a room
within its new
Neonatal Intensive
Care Unit (NICU)
to RE/MAX. Since
the beginning of its
partnership with the
hospital, RE/MAX has
raised $375,000. The
NICU represents just
one way the hospital
has been able to
upgrade its facilities
because of generous
sponsors like RE/MAX.
Hospital Name
Total
Odessa-Midland
Medical Center Hospital
Oklahoma City
Children's Medical Research Institute
$ 405,756
1,253,059
Omaha
Children’s Hospital & Medical Center
1,042,222
Orange County
CHOC Children's
1,272,621
Orlando
Arnold Palmer Hospital for Children, Shands Children's
Hospital at the University of Florida
2,512,035
Pensacola
Sacred Heart Children's Hospital
664,836
Peoria-Bloomington
Children's Hospital of Illinois
Philadelphia
The Children's Hospital of Philadelphia
2,980,339
855,861
3,434,209
Phoenix
Phoenix Children's Hospital
Pittsburgh
Children's Hospital of Pittsburgh of UPMC
Portland, OR
Doernbecher Children's Hospital
Portland-Auburn
The Barbara Bush Children's Hospital at Maine Medical
Center
997,454
1,854,549
710,166
Providence-New Bedford
Hasbro Children's Hospital
1,117,932
Raleigh-Durham
Duke Children's Hospital & Health Center
2,956,734
Rapid City
Rapid City Regional Hospital
373,246
Reno
Renown Children's Hospital
535,902
Richmond-Petersburg
Children's Hospital, VCU Children's Medical Center
832,543
Roanoke-Lynchburg
Carilion Clinic Children's Hospital, Virginia Baptist Hospital
Rochester, NY
Golisano Children's Hospital at Strong
Sacramento
UC Davis Children's Hospital
1,876,682
2,108,808
Salt Lake City
Primary Children's Medical Center
San Angelo
Shannon Medical Center
San Antonio
CHRISTUS Santa Rosa Children's Hospital
1,069,960
851,462
432,347
1,498,466
San Diego
Rady Children's Hospital
2,658,807
San Francisco-Oakland
Children's Hospital & Research Center Oakland
2,105,181
Santa Barbara
Santa Barbara Cottage Hospital
473,892
Savannah
Backus Children's Hospital at Memorial Health University
Medical Center
851,597
Seattle-Tacoma
Seattle Children's Hospital
Sioux City
St. Luke's Regional Medical Center
3,150,281
Sioux Falls-Mitchell
Sanford Health USD Medical Center
Spokane
Kootenai Medical Center, Providence Holy Family Hospital,
Providence Mt. Carmel Hospital, Providence Sacred Heart
Children's Hospital, Providence St. Joseph's Hospital, St.
Luke's Rehabilitation Institute
Springfield, MO
CoxHealth
Springfield-Holyoke
Baystate Children's Hospital
St. Louis
Cardinal Glennon Children's Medical Center, St. Louis
Children's Hospital
331,988
1,336,561
852,421
1,285,377
397,846
Syracuse
Golisano Children's Hospital at Upstate
Tampa-St. Petersburg
All Children's Hospital
2,372,050
935,360
4,293,736
Toledo
St. Vincent Mercy Children's Hospital
544,836
Topeka
St. Francis Health Center
235,143
Tri-Cities, TN/VA
Wellmont Health System
574,450
Tucson
Tucson Medical Center
Tulsa
The Children's Hospital at Saint Francis
1,401,903
597,842
Tyler-Longview
Mother Frances Hospital
549,703
U.S. Market
Hospital Name
Utica
Faxton-St. Luke's Healthcare
Waco-Temple-Bryan
The Children's Hospital at Scott & White
Total
$ 482,246
853,564
Washington, DC
Children's National Medical Center
Watertown
Samaritan Medical Center
3,582,609
507,360
Wausau-Rhinelander
Saint Joseph's Children's Hospital of Marshfield
628,033
Wichita Falls-Lawton
United Regional Health Care System
Wichita-Hutchinson Plus
Via Christi Wichita Health Network
1,022,354
Wilkes Barre-Scranton
The Janet Weis Children's Hospital at Geisinger
2,365,549
Canada Market
617,598
Hospital/Foundation Name
Total
Calgary-Southern Alberta
Alberta Children's Hospital Foundation
$4,040,724
Edmonton-Northern Alberta
Stollery Children's Hospital Foundation
4,866,218
Halifax-Maritimes
IWK - Health Centre Foundation
2,823,478
Hamilton
McMaster Children's Hospital
1,247,154
London-Western Ontario
Children's Health Foundation
2,090,375
Manitoba
Children's Hospital Foundation of Manitoba
1,766,152
Newfoundland-Labrador
Janeway Children's Hospital Foundation
Ottawa-Eastern Ontario
Children's Hospital of Eastern Ontario Foundation
2,420,770
Quebec
Operation Enfant Soleil
6,926,507
Saskatchewan
Children's Health Foundation of Saskatchewan
Toronto-Northern/Central Ontario
SickKids Foundation
Vancouver-British Columbia
BC Children's Hospital Foundation
4,166,990
Ireland Market
Hospital Name
Total
Cork
Cork University Hospital, Mercy University Hospital
Dublin
Our Lady's Children's Hospital - Crumlin, The
National Children's Hospital - Tallaght, Children's
University Hospital Temple Street
United Kingdom Market
Hospital Name
Bristol
Bristol Royal Hospital for Children
962,976
2,349,551
11,043,486
€
79,809
425,487
Total
£
75,000
Cardiff
Children's Hospital for Wales
81,157
Edinburgh
Royal Hospital for Sick Kids
86,892
Australia Market
Hospital Name
Sydney
The Children's Hospital at Westmead
Total
$ 123,500
Children’s Miracle
Network sponsors
in Calgary, Alberta,
Canada, helped
fund the Healing
Gardens at Alberta
Children’s Hospital.
The garden spans six
acres and is intended
for rehabilitation,
meditation and
recreation. It provides
quiet space for
families and patients
to seek respite, and
is integrated into the
therapeutic process of
hospital programs.
Total Children’s Miracle Network Support
This list refers to a sponsor’s or program’s total contribution to Children’s Miracle Network. The ranking is related
to funds raised directly for hospitals, underwriting and in-kind support for hospitals and national operations, and
the program outcome of underwriting and in-kind support. Those with support above $50,000 are listed.
Radiothon by Foresters
Wal-Mart Stores, Inc.
Local Fundraising
Costco Wholesale Corp.
Credit Unions for Kids
RE/MAX International, Inc.
Marriott International, Inc.
National Program Dance Marathon
Dairy Queen Corp.
TD Bank Financial Group
National Program Celebration Broadcast
Rite Aid Corp.
National Program - Direct Mail
McLane Company, Inc.
Ace Hardware Corp.
Food Lion LLC
Speedway SuperAmerica LLC
Giant Food LLC
Log A Load
Air Canada Kids’ Horizons
Publix Super Markets, Inc.
Valero Energy Corp.
Newman’s Own, Inc.
Mike Weir Miracle Golf
Drive For Kids
Carmike Cinemas, Inc.
Delta Air Lines, Inc.
IHOP Corp.
Love’s Travel Stops &
Country Stores
Kroger Co.
CO-OP Financial Services
Circle K Stores, Inc.
Golden Corral Corp.
Toys “R” Us Canada
Goody’s Family Clothing, Inc.
Miss America Organization
HMSHost Corp.
Blockbuster Canada
Kiwanis International
Fred’s, Inc.
Auntie Anne’s, Inc.
Greek Partners - Phi Mu
Microsoft/XBOX Canada
Combined Federal Campaign
CDW Corp.
Greek Partners - Sigma Chi
PartyLite
Tops Markets, LLC
Procter & Gamble
CROSSMARK, Inc.
Sunoco, Inc.
Wawa, Inc.
Produce for Kids
American Legion
Great Clips, Inc.
Six Flags Theme Parks, Inc
Panda Restaurant Group, Inc.
Swiss Chalet
USA Gymnastics
The Hershey Company
Brookshire’s/Super 1 Foods
Stripes Convenience Stores
Pathmark, Inc.
Walt Disney World
Golf Galaxy
Kinney Drugs, Inc.
First Student Canada
PGA Tour
Chevron Corp.
Express Services, Inc.
The Coca-Cola Company
Money Mailer, LLC
The Source by Circuit City
CEFCO Convenience Stores
Safeway Stores, Inc.
Greek Partners Sigma Alpha Epsilon
Hot Wheels
Adcentives West
American Taekwondo Assoc.
Turkey Hill Minit Markets
Sleep Country Canada
Crowne Plaza Hotels & Resorts
Pizza Pizza
Ollie’s Bargain Outlet
FirstGroup America
Round Table Pizza, Inc.
Woodforest Financial Group, Inc.
Quick Chek, Inc.
Independent Charities of America
Talking Rain Beverage Co.
E! Entertainment
ThyssenKrupp AG
Endowment Donors
$1 Million and above:
Under $25,000:
J. Willard and Alice S. Marriott Foundation
Anonymous
Barbara and Bob Hannan
Children’s Hospital of The King’s Daughters Norfolk, VA
Claire Richards
CoxHealth of Springfield, MO
Craig and Annette Sorensen
Jerry Reitman
John and Sarah Hartman
Judith and John Bel
Katherine H. Melvin Estate
Ken and Susanne Potrock
Mark and Ora Pescovitz
Mick and Karen Shannon
Scott and Pamela Burt
The Coca-Cola Company
The Steven A. and Alexandra M. Cohen Foundation
Tom and Carol Sargent
Tom Sullivan and Kimberlee Yaskoski
$500,000 and above:
Steve and Linda Weisz
$250,000 and above:
Arnold Palmer Hospital for Children
Children’s Hospital of Wisconsin
Children’s Memorial Hospital of Chicago
SickKids Foundation - Toronto, Canada
$100,000 and above:
Akron Children’s Hospital
Brett Hutchens
Elmer H. Zimmerman Estate
$50,000 and above:
Brighton Bank
Children’s Hospital of Alabama - Birmingham, AL
Doernbecher Children’s Hospital Foundation
International Dairy Queen
Patricia L. Kuhn Estate
Texas Children’s Hospital - Houston, TX
The Children’s Hospital - Denver, CO
Planned/Estate Gift Commitments
Diane and Pete Doniger
Don and Debra Harris
$25,000 and above:
Celia and David Swanson
Children’s Healthcare of Atlanta
Diane and Pete Doniger
Don and Debra Harris
John and Annie Standley
Jon and Teri Vice
Mario and Betty Pilozzi
Richard J. Eckel Estate
Rob Harris
The Children’s Hospital of Philadelphia
Tom E. Smith
Viola J. Reeno Estate
Monroe Carell Jr. Children’s Hospital at Vanderbilt
The Impact of Children’s Miracle Network Hospitals
Children’s
Miracle Network
hospitals
more Each Year
Children’s Miracle
Network:
Serving
Moreserve
Children
thanare
any
other
children’sMiracle
charity.
17 million children andchildren
their families
served
by Children’s
Network hospitals
each year...more than any other children’s cause.
17 Million Patients per year
4.8 Million Members
129,000 Patients per year
12,000 Wishes per year
100
90
4,900 Patients per year
98%
88%
80
76%
70
60
50
40
30
20
10
Lung & Heart
Transplants
Cancer
Cystic
Fibrosis
How Children’s Miracle Network hospitals distribute funds:
5%
15%
39%
30%
11%
Charitable Care
State-of-the-art Equipment
Preventative Education
Other Immediate Medical Needs
Life-saving Research
Financial Statements
22 | Children’s Miracle Network | 2008 Fundraising Report
REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
REPORT OF INDEPENDENT
Executive Committee and Board of Trustees
CERTIFIED PUBLIC ACCOUNTANTS
Children’s Miracle Network and Subsidiaries
We have audited the accompanying consolidated statements of financial position of Children’s Miracle
Network and subsidiaries (the Organization) as of August 31, 2008 and 2007, and the related
consolidatedCommittee
statementsand
of activities,
Executive
Board offunctional
Trustees expenses and cash flows for the years then ended. These
financial statements
are the responsibility
of the Organization’s management. Our responsibility is to
Children’s
Miracle Network
and Subsidiaries
express an opinion on these financial statements based on our audits.
We have audited the accompanying consolidated statements of financial position of Children’s Miracle
We conducted
audits in accordance
with auditingasstandards
generally
in the2007,
Unitedand
States
Network
and our
subsidiaries
(the Organization)
of August
31, accepted
2008 and
theof related
America
as
established
by
the
American
Institute
of
Certified
Public
Accountants.
Those
standards
consolidated statements of activities, functional expenses and cash flows for the years then ended. These
require that
we plan and
the audit toofobtain
reasonable assurance
about whether
the financial is to
financial
statements
are perform
the responsibility
the Organization’s
management.
Our responsibility
statements are free of material misstatement. An audit includes consideration of internal control over
express an opinion on these financial statements based on our audits.
financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control
We
our audits
in accordance
with auditing
generally
accepted
in examining,
the United on
States of
overconducted
financial reporting.
Accordingly,
we express
no suchstandards
opinion. An
audit also
includes
America
as
established
by
the
American
Institute
of
Certified
Public
Accountants.
Those
standards
a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
require
thatprinciples
we plan used
and perform
the audit
to obtain
reasonable
assurance
thethe
financial
accounting
and significant
estimates
made
by management,
as about
well aswhether
evaluating
statements
are free
of material
misstatement.
Anthat
audit
consideration
of internal
control
overall financial
statement
presentation.
We believe
ourincludes
audits provide
a reasonable
basis for
our over
financial
opinion. reporting as a basis for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control
In our
opinion,reporting.
the financial
statementswereferred
in all also
material
respects,
the
over
financial
Accordingly,
expresstonoabove
such present
opinion.fairly,
An audit
includes
examining,
on
financial
position
of
the
Organization
as
of
August
31,
2008
and
2007,
and
its
changes
in
net
assets,
its the
a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing
functional expenses
and used
its cash
flows
for the years
then ended,
with accounting
accounting
principles
and
significant
estimates
madeinbyconformity
management,
as well asprinciples
evaluating the
generally
accepted
in
the
United
States
of
America.
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
financial position of the Organization as of August 31, 2008 and 2007, and its changes in net assets, its
Salt Lake City,
Utah and its cash flows for the years then ended, in conformity with accounting principles
functional
expenses
March
18,
2009
generally accepted in the United States of America.
Salt Lake City, Utah
March 18, 2009
155 North 400 West
Suite 500
Salt Lake City, UT 84103
T 801.531.6888
F 801.322.0061
W www.grantthornton.com
Grant Thornton LLP
US member of Grant Thornton
155 North 400 West
Suite 500
Salt Lake City, UT 84103
Children's Miracle Network
and Subsidiary
and Subsidiaries
CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
Year ended August 31, 2007
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
August 31,
Program services
Support services
Community ASSETS
Network
services and
program
outreach support
services
Fund
raising
Management
and general
Totals
2008
2007
ASSETS
Travel
$
1,792,567 $ 1,758,155 $ 226,006 $
157,891 $
Cash and cash equivalents
Unrestricted
$ 16,294,678
Employment
costs
2,605,987
5,078,098
1,378,385
928,467 $
Restricted
17,621,038
Equipment rental
27,224
35,655
3,003
1,379
Investments
Contract services
2,140,974
1,065,122
493,050
96,619
Unrestricted
9,989,865
Advertising
and promotion
3,180,388
544,229
39,508 1,308,519
12,887
Restricted
Printing
and photography
139,788
176,699
16,554
Contributions
receivable
225,2186,420
Accountscampaign
receivable, net of allowance for doubtful
Corporate
340,033
1,813,507
113,344
accounts
of
$55,902
in
2008
and
$217,544
in
2007
1,778,170
Sponsorship support
243,935
1,346,675
366,483
5,373
Prepaid expenses and other current assets
637,239
Program support
19,012
2,098,767
92,367
Property, furniture and equipment, net
4,463,406
Occupancy
and utilities
89,724for doubtful
76,187
57,522
26,094
Non-current
contributions receivable, net of allowance
Telephone
50,576
100,449
24,744
accounts of $52,329 in 2008 and $0 in 2007
314,2838,709
125,225
Other non-current assets
Depreciation
10,380
94,629
4,661
78,623
$
52,757,641
Total fees
assets
Professional
138,748
205,195
10,619
108,923 $
Insurance
LIABILITIES
Postage and shipping
Accounts payable
Supplies
Accrued liabilities
Unrelated business income tax
Payable to participating hospitals
Other
Payable to partners
Deferred revenue
Notes payable - current portion
Notes Payable
Other long-term liabilities
Total liabilities
$
10,862,587
9,990,937
35,375,544
67,261
3,795,765
10,797,409
3,777,012
1,038,116
339,461
397,957
2,266,884
1,842,295
341,458
2,210,146
3,737,810
1,962,466
249,527
184,478 -
110,645
188,293
64,503,821
463,485
56,331
20,195
4,038
13,921
94,485
27,405
16,556
3,562
9,130
56,653
36,234
89,503
26,988
6,731
159,456
LIABILITIES AND NET ASSETS
Licenses and fees
3,934,619
$ 2,484,939
1,380,015
236,140
709,560
80,400
13,845 $
1,039,945
634,423
303,588
16,500
16,500
15,716,238
34,992,406
4,351
3,118
462
648
8,579
1,854,731
383,138
11,139,797 $ 15,232,299 $ 2,849,329 $8,910,517
1,584,527 $ 30,805,952
6,539,428
42,868
2,457,132
1,429,902
1,038,116
33,530,750
44,636,691
NET ASSETS
Unrestricted
Temporarily restricted
Permanently restricted
16,957,023
456,530
1,813,338
18,468,343
579,874
818,913
Total net assets
19,226,891
19,867,130
$ 52,757,641
Total liabilities and net assets
The accompanying notes are an integral part of this financial statement
7
The accompanying notes are an integral part of these financial statements
$
64,503,821
and Subsidiary
and Subsidiaries
CONSOLIDATED STATEMENT OF ACTIVITIES
Year
ended services
August 31, 2008
Program
Community
services and
outreach support
Network
program
services
Unrestricted
Revenues:
Hospital fees
Travel
Production underwriting gifts
Employment
costs
Direct
mail
Donations-in-kind
Equipment rental
Campaign
Contract services
Licensing fees
Advertising and promotion
Endowments,
major gifts, and grants
Printing
and
photography
Total
revenues
$
Corporate campaign
Other
revenue: support
Sponsorship
Interest
andsupport
dividend income
Program
Net realized gain on investments
Occupancy and utilities
Net unrealized loss on investments
Telephone
Gain
on sale of fixed assets, net
Ancillary
revenue
Depreciation
Net assets released from restrictions
Professional fees
Total revenues, gains and
Insurance
other support
Licenses and fees
Expenses
Postageand
andlosses:
shipping
Program
Suppliesservices
Community services and outreach support
Unrelated
business services
income tax
Network program
Other
Total program services
Support services
Fund raising
Management and general
Fund
Management
Temporarily
raising
andPermanently
general
restricted
restricted
340,033
1,813,507
113,344
-
243,935
1,346,675
2,074,313
2,098,767
387,880
76,187
(1,501,341)
100,449
94,614
1,107,793
94,629
579,874
205,195
366,483
5,373
19,012
89,724
50,576
10,380
138,748
56,331
27,405
20,195
38,067,462
16,556
36,234
89,503
57,522
24,744 4,661 (579,874)
10,619
92,367
26,094
8,709
78,623
108,923
4,038
(123,344)
3,562
26,988
Other loss
Change in net assets
1,962,466
2,074,313
2,210,146
387,880
249,527
(1,501,341)
184,478
94,614
1,107,793
188,293
463,485
-
94,485
38,938,543
56,653
6,731
709,560
80,400
14,408,137
20,687,701
4,351
3,118
462
35,095,838
11,139,797 $ 15,232,299 $ 2,849,329 $-
Total expenses and losses
2,266,884
13,921
994,425
9,130
236,140
$
Totals
Totals
- $
- $ 15,801,826
$ 15,801,826 $
1,792,567 $ 1,758,155 $ 226,006 $
157,891 $
3,934,619
11,291,642
75,843
11,367,485
2,605,987
5,078,098
928,467 - 9,990,937
3,753,426 1,378,385 3,753,426
380,687
1,430,854
1,811,541
27,224
35,655
3,003
1,379 67,261
2,865,491
2,865,491
2,140,974
1,065,122
493,050
96,619
3,795,765
171,090
171,090
3,180,388
544,229
39,508 12,887
10,000
994,425 3,777,012
1,004,425
139,788
176,699
16,554
6,420
339,461
36,775,284
35,324,329
456,530
994,425
Total support services
Net assets, beginning of year
Net assets, end of year
Support services
13,845
159,456
1,584,527 $-
1,039,945
14,408,137
16,500
20,687,701
8,579
35,095,838
30,805,952
16,500
648
-
1,771,014
2,634,296
-
-
1,771,014
2,634,296
4,405,310
-
-
4,405,310
39,501,148
-
-
39,501,148
77,634
-
-
77,634
(123,344)
994,425
(640,239)
(1,511,320)
18,468,343
$ 16,957,023 $
579,874
456,530 $
818,913
1,813,338 $
7
4
19,867,130
19,226,891
and Subsidiary
and Subsidiary
Year ended
August 31, 2007
CONSOLIDATED STATEMENT OF ACTIVITIES
Program services
Community
Network
services and
program
outreach support
services
Travel
Revenues:
Employment
Hospital
fees costs
Production
gifts
Equipmentunderwriting
rental
Direct mail
Contract services
Canister direct
Donations-in-kind
Corporate
Campaign
Printing and
photography
Endowments, major gifts, and grants
Corporate campaign
Total revenues
Sponsorship support
$
Fund
Management
raising
and general
Temporarily Permanently
restricted
restricted
Unrestricted
1,792,567 $ 1,758,155 $ 226,006 $
157,891 $
Totals
Totals
3,934,619
2,605,987 $ 5,078,098
10,934,326 1,378,385
$
- $ 928,467 - $ 9,990,937
10,934,326
11,221,863
397,957
11,619,820
27,224
35,655
3,003
1,379 67,261
3,191,744
3,191,744
2,140,974
1,065,122
493,050
96,619
3,795,765
263,810
263,810
3,180,388
544,229
39,508
12,887 3,777,012
1,531,184
181,917
1,713,101
2,529,045
2,529,045
139,788
176,699
16,554
6,420 339,461
758,000
1,088,931
330,931
340,033
1,813,507
113,344
2,266,884
30,002,903
579,874
758,000
31,340,777
243,935
1,346,675
366,483
5,373
1,962,466
Program support
Other revenue:
Occupancy
and utilities
Interest
and dividend
income
19,012
2,098,767
89,724
Net
realized loss on investments
Telephone
Net unrealized gain on investments
Depreciation
Gain on sale of property and equipment
Professional
fees
Ancillary
revenue
Net
assets released from restrictions
Insurance
76,187
2,580,426
(11,037)
100,449
831,385
94,629
1,225,919
205,195
1,227,016
20,195 -
50,576
10,380
138,748
56,331
Totaland
revenues,
Licenses
fees gains and
other support
27,405
36,234
Supplies
Expenses
and losses:
236,140
Program
services
Unrelated
business income tax
Community services and outreach support
Other
Network program services
Support services
$
57,522
92,367
2,210,146
-
26,094 8,709 78,623
108,923 13,921 -
249,527
2,580,426
(11,037)
184,478
831,385
188,293
1,225,919
463,485
1,227,016
94,485 -
16,556
35,856,612
89,503
3,562
579,874
26,988
9,130
758,000
6,731
56,653
37,194,486
159,456
709,560
80,400
24,744
4,661
10,619
4,038
13,845
11,139,797
3,118
462
15,232,299
11,139,797 $ 15,232,299 $ 2,849,329 $
1,039,945
-
16,500
4,351
648 1,584,527 $
16,500
11,139,797
8,579
15,232,299
30,805,952
Total program services
26,372,096
-
-
26,372,096
2,849,329
1,584,527
-
-
2,849,329
1,584,527
Total support services
Total expenses and losses
Other gains
4,433,856
30,805,952
80,494
-
-
4,433,856
30,805,952
80,494
5,131,154
579,874
758,000
6,469,028
Net assets, beginning of year
13,337,189
-
60,913
13,398,102
Support services
Fund raising
Management and general
Net assets, end of year
$
18,468,343 $
579,874 $
7
The accompanying notes are an intergral part of this financial statement
5
818,913 $
19,867,130
and Subsidiary
and Subsidiaries
Year ended
August 31, 2007
Program services
Support services
Community
services and
outreach support
Network
program
services
Fund
raising
Program services
$
Employment costs
Equipment rental
Contract services
$
27,224
35,655
3,003
2,140,974
1,065,122
3,180,388
544,229
2,502,124 $ 2,227,990 $
Employment
costs
Printing and photography
Totals
Support services
Community
Network
1,792,567 $ 1,758,155 $ 226,006 $
services and
program
Fund
2,605,987
5,078,098
1,378,385
outreach support
services
raising
Travel
Travel
Management
and general
157,891 $
3,934,619
Management
928,467
9,990,937
and general
Totals
1,379
67,261
493,050
96,619
3,795,765
39,508
12,887
3,777,012
16,554
6,420
195,584 $
5,135,399
4,720,993
139,788
7,570,394
176,699
Equipment
rentalcampaign
Corporate
27,874
340,033
33,358
1,813,507
15,500
113,344
1,521,104 339,461
14,747,241
- 2,140 2,266,884 78,872
Contract
services support
Sponsorship
2,406,746
243,935
1,173,359
1,346,675
240,930
366,483
198,850 1,962,4664,019,885
5,373
Program
Advertising
andsupport
promotion
19,012
3,403,111
2,098,767
2,052,762
103,091
92,367
113,667 2,210,1465,672,631
89,724
155,164
76,187
136,378
57,522
22,133
26,09410,431 249,527 324,106
8,709
184,478
and utilities
PrintingOccupancy
and photography
Telephone
50,576
Depreciation
10,380
Corporate campaign
Sponsorship support
-
138,748
Program
support
Insurance
56,331
Occupancy
andand
utilities
Licenses
fees
Telephone
Supplies
Depreciation
Other
-
$
94,629
4,661
205,195
10,619
2,220,430
20,195
-
192,049
26,988
10,104
6,73114,540 159,456 237,236
236,140
38
709,560
43,843
80,400 57
-
13,84598,226 1,039,945 142,164
16,500
16,500
-
154,535
204,934
34,983
24,358
3,118
9,13049,287
2,312,948
94,485
89,503
135,607
14,699
1,421
11,139,797 $ 15,232,299 $ 2,849,329 $
45,882
54,903
301,079
56,653 396,042
229,060
462
35,308
$
92,518
13,921
1,997,680
463,485
36,234
76,985
Licenses and fees
Other
5,081
2,865,242
188,293
3,5629,623
286
-
107,797
16,556
5,361
Supplies
108,923
-
4,038
8,880
Interest
78,623
229,335
27,405
4,351
Insurance
24,744
1,507,513
-
Professional fees
100,449
2,865,242
293,037
Professional fees
934,750
209,701 $
648
8,467
1,584,527 $
8,579
30,805,952
603,228
69,229
7,639
22,166
2,403
14,492
98,085
112,595
9,004
9,621
186,123
214,056
19,234
41,964
576,333
-
6,500
6,500
146
1,008
10,038
-
-
3,042
5,842
14,408,137 $ 20,687,701 $ 1,771,014 $
2,634,296 $
7
39,501,148
and Subsidiary
and Subsidiary
Year ended
August 31, 2007
YearProgram
ended services
August 31, 2007
Community
services and
outreach support
Travel
$
Support services
Fund
raising
Program services
Management
and general
Totals
Support services
1,792,567 $ 1,758,155 $
226,006 $
157,891 $
3,934,619
928,467
9,990,937
Equipment rental
Community
2,605,987
services and
27,224
outreach support
Network
5,078,098
program
35,655
services
Contract services
2,140,974
1,065,122
493,050
96,619
3,795,765
3,180,388
544,229
39,508
12,887
3,777,012
139,788
176,699
16,554
6,420
339,461
340,033
1,813,507
113,344
-
2,266,884
243,935
1,346,675
366,483
Employment costs
Travel
Network
program
services
$
1,378,385
1,792,567 $ 1,758,155 $
Employment costs
2,605,987
Corporate campaign
Equipment rental
5,078,098
27,224
Sponsorship support
35,655
Fund
3,003
raising
Management
and1,379
general
226,006 $
1,378,385
3,003
67,261
Totals
157,891 $
3,934,619
928,467
9,990,937
5,373
1,379
1,962,466
67,261
Contract
services
Program
support
2,140,974
19,012
1,065,122
2,098,767
493,050
-
Advertising
and promotion
Occupancy
and utilities
3,180,388
89,724
544,229
76,187
39,508
57,522
26,09412,887
3,777,012
249,527
PrintingTelephone
and photography
50,576
139,788
100,449
176,699
24,744
16,554
8,709 6,420
184,478 339,461
Depreciation
Corporate
campaign
10,380
340,033
94,629
1,813,507
4,661
113,344
243,935
138,748
1,346,675
Program support
19,012
2,098,767
89,724
Professional fees
3,795,765
92,36796,619 2,210,146
78,623
- 188,293
2,266,884
205,195
10,619
108,923
20,195
4,038
13,921
16,556
3,562
36,234
89,503
26,988
Telephone
Supplies
50,576
236,140
100,449
709,560
24,744
80,400
Depreciation
10,380
-
94,629
-
- 4,661
16,50078,623
16,500 188,293
4,351
138,748
3,118
205,195
462
10,619
648
108,923
8,579 463,485
Sponsorship support
Insurance
56,331
Licenses and fees
27,405
Other fees
Professional
$
Insurance
76,187
366,483
-
56,331
20,195
4,038
Licenses and fees
27,405
16,556
36,234
236,140
Supplies
Other
$
2,210,146
9,130
56,653
6,731
159,456
26,094
249,527
13,845 8,709 1,039,945 184,478
1,584,527 $
30,805,952
94,485
3,562
9,130
56,653
89,503
26,988
6,731
159,456
709,560
80,400
13,845
1,039,945
-
16,500
16,500
648
8,579
-
4,351
3,118
462
11,139,797 $ 15,232,299 $ 2,849,329 $
1,962,466
94,485
13,921
-
7
463,485
92,367
57,522
11,139,797 $ 15,232,299 $ 2,849,329 $
5,373
1,584,527 $
30,805,952
Miracle Network
2008 Financial StatementsChildren's
and Subsidiary
and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended August 31,
2008
Cash flows from operating activities
Program services
Adjustments to reconcile change in net assets to net cash provided by
Community
Network
operating activities
services and
program
Depreciation and amortization
Unrealized loss (gain) on investmentsoutreach support
services
Realized loss (gain) on investments
Gain on sale of property and equipment
Investment management fees
Travel
$
1,792,567 $ 1,758,155
Proceeds from endowment contributions
Dividend income
Employment costs
2,605,987
5,078,098
Provision for obsolete inventory
Equipment rentalOther (gain) loss
27,224
35,655
In-kind endowment contributions
Support
$ services
(640,239)
Fund
raising
$
1,378,385
3,003
2,140,974
1,065,122
493,050
in assets and liabilities
Advertising andChanges
promotion
3,180,388
544,229
39,508
Telephone
Total adjustments
Depreciation
Professional fees
Net cash provided by operating activities
Insurance Cash flows from investing activities
Purchase of property and equipment
Licenses and Proceeds
fees from sale of property and equipment
Purchase of investments
Proceeds from sales of investments
Supplies
Net cash used in investing activities
139,788
176,699
16,554
340,033
1,813,507
113,344
243,935
1,346,675
366,483
19,012
2,098,767
89,724
76,187
57,522
50,576
100,449
24,744
10,380
94,629
4,661
205,195
10,619
56,331
20,195
4,038
27,405
16,556
3,562
36,234
89,503
26,988
236,140
709,560
80,400
Other
Cash flows from financing activities
Proceeds from issuance of notes payable
$
Principal payments on notes payable
Proceeds from endowment contributions
-
-
4,351
3,118
6,469,028
96,619
3,795,765
12,887
3,777,012
257,900
233,074
17,723,579 6,420 (7,940,965) 339,461
(295,911)
- 19,6232,266,884
(328,863)
120,095
842,885 5,373 (764,290)
1,962,466
345,811
154,731
(19,245,241)92,367 7,557,8262,210,146
1,471,593
383,138
2,525,40126,094 1,871,213 249,527
150,395
182,413
-
138,748
$
Management
142,164
188,293
1,501,341
and general (831,385)
Totals
(387,880)
11,037
(94,614)
(1,225,919)
$ (3,364)
157,891 $
3,934,619
(994,425)
(260,000)
50,813
-9,990,937
928,467
585,538
77,634 1,379 (80,494) 67,261
(498,000)
226,006
Contract services
Accounts receivable
Restricted cash
Prepaid expenses and other assets
Corporate campaign
Other non-current assets
Accounts payable
Sponsorship support
Accrued liabilities
Program supportPayable to hospitals
Payable to partners
Deferred revenue
Other liabilities
2007
8,709
184,478
3,739,21878,623 (294,072) 188,293
3,098,979
108,923
6,174,956
13,921
94,485
(705,770)
(3,665,495)
7,999 9,130 2,049,852 56,653
(952,363)
(2,314,484)
569,982 6,731 1,391,315 159,456
13,845
(1,080,152)
-
16,500
462
1,039,945
(2,538,812)
648
11,139,797 $ 15,232,299 $ 2,849,329 $
Net cash provided by financing activities
5,500,000
Net increase in cash and cash equivalents
1,584,527 $
Cash and cash equivalents, at beginning of year
30,805,952
260,000
3,494,425
260,000
5,432,091
16,500
8,579
-
(3,000,000)
994,425
(81,161)
Effect of exchange rate changes on cash
87,258
3,983,402
10,862,587
6,879,185
Cash and cash equivalents, at end of year
$ 16,294,678
$ 10,862,587
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for unrelated business income tax
$
$
9,146
12,362
-
Noncash investing and financing activities
Property and equipment financed with accounts payable
Exchange of property
$
$
229,918
15,830
-
7
The accompanying notes are an integral part of these financial statements 2008 Annual Report | 29
8
463,485
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2008 and 2007
NOTE A - ORGANIZATION
Children’s Miracle Network (the Organization) is a charitable organization, qualified under Section
501(c)(3) of the United States Internal Revenue Code, organized for the purposes of:
1. Making distributions to other charitable organizations.
2. Supporting fundraising for the benefit of sick and injured children and youth, including
treatment, health care research, and acquisition of health care equipment and supplies.
3. Generating awareness programs concerning the health care needs of children and youth and
the institutions and people who care for them.
4. Generating educational programs to promote good health care practices for children and
youth; educating the public in the health care needs of children and youth; and educating the
public in the needs and practices of institutions and people who provide health care to them.
Children’s Miracle Network raises awareness of children’s health care needs and supports fundraising
for nonprofit children’s hospitals. The Organization facilitates fundraising for member children’s
hospitals by 1) establishing and maintaining relationships with corporate and media partners and 2)
creating, maintaining and facilitating fundraising programs that are executed by corporate, media and
hospital partners to benefit children’s health care. The majority of fundraising solicitations are made by
Children’s Miracle Network partners—corporate sponsors, media sponsors and member hospitals.
Contributions solicited through corporate-sponsored campaigns and through Children’s Miracle
Network programs are generally received by Children’s Miracle Network, acting as an agent, and then
paid to member hospitals. Children’s Miracle Network has no discretionary variance power over the
distribution of such contributions and, in accordance with Statement of Financial Accounting
Standards No. 136, Transfers of Assets to a Not-for-Profit Organization or Charitable Trust that Raises or Holds
Contributions for Others, such contributions are not reflected as revenues in Children’s Miracle Network’s
financial statements. Children’s Miracle Network’s campaign year is January 1 through December 31.
Contributions are distributed to member hospitals quarterly.
To participate in an upcoming year’s fundraising and awareness campaign, hospitals pay a membership
fee and license the use of the Children’s Miracle Network name and logo. They become sole
Children’s Miracle Network licensees in their respective markets (geographic areas); the funds raised
within these markets are unrestricted funds and may be used by member hospitals as needed. Most
funds raised benefit patients, pediatric programs, equipment and ongoing research to create better
treatments and cure childhood diseases. Corporate sponsors need not become licensees; however, they
are generally required to donate all funds they raise to hospitals affiliated with Children’s Miracle
Network.
Children’s Miracle Network’s operational activities are primarily supported by hospital membership
fees, mentioned above, and corporate underwriting. Corporate underwriting represents donations from
corporate sponsors to Children’s Miracle Network.
9
August 31, 2008 and 2007
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A summary of the significant accounting policies consistently applied in the preparation of the
accompanying financial statements follows.
1.
Basis of presentation
The Organization presents its accounts in accordance with the American Institute of Certified Public
Accountants Audit and Accounting Guide for Not-for-Profit Organizations (Audit Guide). Under the
Audit Guide, not-for-profit organizations are required to provide a statement of financial position, a
statement of activities, and a statement of cash flows which are prepared to focus on the organization as
a whole and to present balances and transactions according to the existence or absence of donorimposed restrictions. Not-for-profit organizations are required to report total assets, liabilities, and net
assets in a statement of financial position; change in net assets in a statement of activities; and changes
in cash and cash equivalents in a statement of cash flows. The Audit Guide also requires that not-forprofit organizations report expenses by their functional classification, such as major programs and
supporting activities. The Organization presents expenses by functional classification in a statement of
functional expenses.
The Organization maintains its accounts on the accrual basis of accounting. Net assets and revenues,
gains and losses are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified as follows:
Permanently restricted net assets
Net assets subject to donor-imposed stipulations that they be maintained permanently by the
Organization. Generally, the donors of these assets permit the institution to use all or part of the
income earned on related investments for general or specific purposes. As of August 31, 2008 and
August 31, 2007, Children’s Miracle Network has received $1,813,338 and $818,913, respectively, of
resources which have been classified as permanently restricted net assets. Children’s Miracle Network
has an ongoing long-term funding campaign to benefit its endowment fund. Endowment contributions
received are classified as permanently restricted net assets in the accompanying financial statements.
Temporarily restricted net assets
Net assets subject to donor imposed stipulations that may or will be met by actions of the Organization
and/or the passage of time.
10
August 31, 2008 and 2007
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
1.
Basis of presentation (continued)
Unrestricted net assets
Net assets not subject to donor-imposed stipulations.
Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by
donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and
losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted
net assets unless their use is restricted by explicit donor stipulations or by law.
Expirations of temporary restrictions on net assets, i.e., the donor-stipulated purpose has been fulfilled
and/or the stipulated time period has elapsed, are reported as reclassifications between the applicable
classes of net assets.
2.
Principles of consolidation
The consolidated financial statements include the accounts and operations of Children’s Miracle
Network, Children’s Miracle Network UK, Children’s Miracle Network Enterprises Limited and
Children’s Miracle Network Ireland for the period ended August 31, 2008. For the period ended
August 31, 2007, the consolidated financial statements include the accounts and operations of
Children’s Miracle Network and Cure Kids’ Cancer. As discussed more fully in Note L, Cure Kids’
Cancer was merged into Children’s Miracle Network during the period ended August 31, 2008. All
intercompany accounts and transactions have been eliminated in the consolidation.
3.
Use of estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amount of assets, liabilities, and net assets and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues, gains and other support, and
expenses during the reporting period. On an ongoing basis, the Organization evaluates the estimates
and assumptions based upon historical experience and various other factors and circumstances. The
Organization believes that the estimates and assumptions are reasonable in the circumstances; however,
the actual results could differ from these estimates under different future conditions.
4.
Cash and cash equivalents
The Organization considers all highly liquid instruments with an original maturity of three months or
less when purchased to be cash equivalents. The Organization’s cash equivalents consist of money
market funds.
11
August 31, 2008 and 2007
5.
Restricted cash
Restricted cash and equivalents are resources received from the Organization’s campaigns and
programs which are payable to member hospitals. Restricted cash is excluded from cash and cash
equivalents for the purposes of the statement of cash flows.
6.
Investments
Investments are stated at fair value determined by quoted market prices as of year end. Investment
income or loss (including realized gains and losses on investments, interest, and dividends) and
unrealized gains and losses on investments are recognized in the statements of activities.
7.
Restricted investments
Restricted investments are resources restricted for future payouts of the supplemental employee
retirement plan.
8.
Contributions
Contributions, grants, and bequests including unconditional promises to give, are recognized upon
receipt as either temporarily or permanently restricted support if they are received with donor
stipulations that limit the use of the donated assets. When a donor restriction is satisfied, temporarily
restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities
as net assets released from restrictions. Results of fundraising efforts that are received as agency funds
and later paid to member hospitals are not recognized as revenues; instead, these funds are recorded as
restricted cash and payables to member hospitals. Contributions of assets other than cash are recorded
at their estimated fair value. Contributions that will be received within one year from the statement of
financial position date are not discounted. Contribution pledges that are to be received over multiple
years are discounted in accordance with APB Opinion No. 21, Interest on Receivables and Payables.
Contributions of services are recognized if the services received (a) create or enhance nonfinancial
assets or (b) require specialized skills, which are provided by individuals possessing those skills and
would typically need to be purchased if not provided by donation. The Organization received service
and material donations included in the accompanying statement of activities at an estimated fair market
value of approximately $1.8 million and $1.7 million in 2008 and 2007, respectively. The Organization
received cash donations included in the accompanying statement of activities of approximately $7.2
million from four major donors during the year ended August 31, 2008.
The Organization has a substantial number of volunteers that have donated a significant amount of
time to the Organization’s programs and activities. No amounts have been reflected in the financial
statements for these services inasmuch as no objective basis is available to measure the value of such
services.
August 31, 2008 and 2007
9. Temporarily restricted net assets
The Organization has adopted the following accounting policies with respect to temporarily restricted
net assets:
•
Contributions with restrictions met in the same year
Contributions received with donor-imposed restrictions that are met in the same year as received
are reported as revenues of unrestricted net assets.
•
Release of restrictions on net assets for acquisition of land, building and equipment
Contributions of land, building, and equipment without donor stipulations concerning the use of
such long-lived assets are reported as revenues of unrestricted net assets. Contributions of cash or
other assets to be used to acquire land, buildings, and equipment with donor stipulations are
reported as revenues of temporarily restricted net assets; the restrictions are considered to be
released at the time of acquisition of such long-lived assets.
10. Accounts receivable
Accounts receivable represent billings to member hospitals for membership fees and various ancillary
services. Accounts receivable are expected to be collected during the next fiscal year and are recorded
at net realizable value. The allowance for doubtful accounts is directly related to receivables for the
ancillary services provided to member hospitals and to pledges receivable.
Accounts outstanding longer than the contractual payment terms are considered past due and finance
charges are charged on the outstanding balance. The Organization determines its allowance by
considering a number of factors, including the length of time receivables are past due, the
Organization’s previous loss history, the member hospital’s current ability to pay its obligation to the
Organization, and the condition of the general economy and the industry as a whole. The Organization
writes off receivables when they become uncollectible, and payments subsequently received on such
receivables are credited to the allowance for doubtful accounts.
11. Property, furniture and equipment
Property, furniture and equipment are recorded at cost when purchased or fair market value at the date
of gift, if contributed. Expenditures over $2,000 that will benefit future periods are capitalized and
expensed over the useful life of the asset. Property, furniture and equipment are depreciated using the
straight-line method over the estimated useful lives of the assets, which range from three to five years
for furniture and equipment and thirty years for property. The cost and accumulated depreciation of
property and equipment sold or otherwise retired are removed from the accounts and the gain or loss
on disposition is reflected in the statement of activities in the period of disposition.
13
August 31, 2008 and 2007
12. Hospital and licensing fees
Cash is received in advance from hospitals for membership fees. Membership fee revenue is deferred
and amortized ratably over the one-year contract period.
During the period ended August 31, 2008, the Organization received approximately $171,000 of
revenue from licensing agreements. Fees received under licensing agreements are accounted for as
exchange transactions and are recognized in the statement of activities when earned under the terms of
the contracts.
13. Foreign currency translation
The accounts of Children’s Miracle Network’s Canadian office, Children’s Miracle Network UK,
Children’s Miracle Network Enterprises Limited and Children’s Miracle Network Ireland are translated
into U.S. dollars in the accompanying financial statements according to the provisions of Statement of
Financial Accounting Standards No. 52, Foreign Currency Translation. The functional currency of
Children’s Miracle Network’s Canadian office is the Canadian dollar; the functional currency of
Children’s Miracle Network UK and Children’s Miracle Network Enterprises Limited is the pound; and
the functional currency of Children’s Miracle Network Ireland is the euro.
14. Income taxes
The Organization received a tax determination letter indicating that it qualifies as a tax-exempt
organization under Section 501(c)(3) of the Internal Revenue Code. The Organization is also exempt
from State of Utah taxation. In 2008 and 2007, the Organization incurred $6,500 and $16,500,
respectively, in unrelated business income tax resulting from transactions that were not within the scope
of the Organization’s stated mission.
15. Impairment of long-lived assets
The Organization reviews long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of
assets to be held and used is measured by a comparison of the carrying amount of an asset to future
undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be
impaired, the impairment to be recognized is measured by the amount by which the carrying amount of
16. Advertising expenses
Advertising costs are expensed as incurred and are included in advertising and promotions on the
Statement of Functional Expenses. Advertising costs were approximately $5.7 million and $3.8 million
in 2008 and 2007, respectively.
14
August 31, 2008 and 2007
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
17. Functional expenses
The Organization performs four functions: community services & outreach support, network program
services, fundraising and management & general. Definitions of these functions are as follows:
Community Services & Outreach Support – All costs incurred to develop, package and provide public
outreach programs to member children’s hospitals throughout the United States, Canada, the UK and
Ireland.
Network Program Services – Activities performed by the Organization to develop national fundraising
programs for over 170 children’s hospitals throughout the United States, Canada, the UK and Ireland.
Participation in the Network provides hospitals access to corporate charity care fundraising programs.
Expenses include those related to day-to-day involvement with member hospitals and relationships with
corporate sponsors.
Fundraising – Activities performed by the Organization to generate funds and/or resources to support
its own programs and operations.
Management & General – All costs that are not identifiable with a single program or fundraising activity,
but are indispensable to the conduct of such programs and activities and to the Organization’s
existence. This includes expenses for the overall direction of the Organization, business management,
general recordkeeping, budgeting, financial reporting, and activities relating to these functions such as
salaries, rent, supplies, equipment, and other general overhead.
The majority of the Organization’s expenses are classified as Community Services & Outreach Support and
Network Program Services as the majority of expenses incurred by the Organization fulfill the purposes or
mission for which the Organization exists. Furthermore, the majority of expenses are incurred to
create, maintain and facilitate fundraising programs that are executed by corporate, media and hospital
partners to benefit children’s health care. However, actual solicitations to current and potential donors
are not made by the Organization; rather, the solicitations are made by the corporate sponsors, media
sponsors and member hospitals.
Any expenses incurred by the Organization to raise funds to support its own programs and operations
or where the Organization directly solicits funds from donors are classified as Fundraising expenses.
18. Reclassifications
Certain immaterial reclassifications have been made to fiscal year 2007 financial information to
conform to the 2008 presentation.
15
August 31, 2008 and 2007
NOTE C - INVESTMENTS
Investments, at fair value, consist of the following at August, 31:
2008
Mutual funds
$
2007
7,719,776
$
9,493,195
Treasury or agency securities
-
1,165,458
Corporate bonds
-
896,112
Mortgage securities
-
280,760
Fixed Income
2,300,449
-
Equities/Equity Funds
1,278,159
-
11,298,384
$ 11,835,525
$
The net realized gain on investments was $387,880 and the net unrealized loss on investments was
$1,501,341 at August 31, 2008. The net realized loss on investments was $11,037 and the net unrealized
gain on investments was $831,385 at August 31, 2007. Interest and dividend income was $2,074,313
and $2,580,426 in 2008 and 2007, respectively.
NOTE D - PROPERTY, FURNITURE AND EQUIPMENT
A summary of property, furniture and equipment and estimated useful lives as of August 31 follows:
2008
1,912,639 $
2007
1,912,639
Useful lives
Building and improvements
2,246,481
1,614,270
30 years
Office furniture and equipment
1,074,536
1,003,740
3-5 years
5,233,656
4,530,649
770,250
792,839
Land
$
Less accumulated depreciation and amortization
$
4,463,406 $
3,737,810
Depreciation expense was $142,164 and $188,293 for the years ended August 31, 2008 and 2007,
respectively.
16
August 31, 2008 and 2007
NOTE E – COMMITMENTS AND CONTINGENCIES
Children’s Miracle Network is involved in litigation and claims arising in the ordinary course of its
operations. The Organization’s management believes that the liabilities, if any, arising from such
litigation and claims will have no material adverse effect on Children’s Miracle Network’s financial
statements.
The Organization leases certain of its property under long-term operating leases. Certain of the leases
have options to renew the lease beyond the initial term. During 2007, the Organization entered into a
sales-leaseback transaction for the sale of its corporate offices. The lease will continue until May 1,
2009. The minimum lease payments required under the sales-leaseback transaction are included in the
amounts below. Future minimum lease payments required under operating lease agreements as of
August 31, 2008 are as follows:
Year ending August 31,
2009
2010
2011
Thereafter
Future minimum lease payments
$
258,854
43,155
2,307
-
$
304,316
Rent expense for the years ended August 31, 2008 and 2007 was $352,904 and $201,279, respectively.
During 2007, Children’s Miracle Network entered into a three-way agreement between Children’s
Miracle Network, Walt Disney World Co. and PGA TOUR, Inc. to be the title sponsor and exclusive
benefiting charity of the annual PGA TOUR tournament held at the Walt Disney World Resort in
Orlando, Florida. The tournament is called the “Children’s Miracle Network Classic.” Future
payments required under the cancelable agreement as of August 31, 2008 are as follows:
2009
2010
2011
Thereafter
Total future payments per contract
$
3,908,000
4,071,000
4,241,000
9,022,000
$
21,242,000
In 2008, the Organization recorded $2 million of expense related to this agreement.
During 2008, the Organization entered into commitments for renovations on its new international
headquarters building in Salt Lake City, Utah. As of August 31, 2008, the commitments totaled
approximately $4.5 million.
17
August 31, 2008 and 2007
NOTE F – LONG-TERM LIABILITIES
During 2008, the Organization entered into a 10-year, 6.25 percent, $2.5 million mortgage to finance
renovations on its new international headquarters building in Salt Lake City, Utah. The loan is
amortized over a 25 year period with a balloon payment after ten years. The loan is secured by the new
headquarters building.
The following is a schedule by years of aggregate maturities of principal payments for the loan as of
August 31, 2008:
2009
2010
2011
2012
2013
Thereafter
Total
$
42,868
45,626
48,560
51,684
55,008
2,256,254
$
2,500,000
Debt issuance costs related to this loan were capitalized. Net unamortized debt issuance costs as of
August 31, 2008 are $25,572 and are included in other non-current assets in the financial statements.
During 2008, the Organization borrowed $3 million on its investment margin account at an average
variable rate of 4.3 percent. This entire balance was paid off during the year.
Interest expense during 2008 related to these two financing activities was $22,166.
NOTE G – CONTRIBUTION RECEIVABLES
Contributions receivable are as follows at August 31:
Due within one year
Due in one to five years
$
Less amounts representing interest
Less allowance for uncollectible receivables
$
2008
225,218
456,625
681,843
90,013
52,329
539,501
$
$
2007
397,957
397,957
397,957
18
August 31, 2008 and 2007
NOTE H – CONTRIBUTION PLEDGES
The Organization received $3,297,146 and $5,496,600 in conditional contribution pledges and
unconditional intentions to give as of August 31, 2008 and 2007, respectively, that were not recognized
in the current period financial statements in accordance with FASB Statement No. 116, Accounting for
Contributions Received and Contributions Made. These conditional pledges will be recognized in the financial
statements in the period when the donor-stipulated conditions are satisfied.
NOTE I – EMPLOYEE BENEFIT PLANS
The Organization has a noncontributory defined contribution employee pension plan. The plan covers
all employees who have completed at least one year of service and are 21 years of age. The plan
provides for a scheduled vesting of up to 20 percent a year beginning after two years of service.
The Organization also has a Supplemental Executive Retirement Plan which is a money purchase plan.
The Plan covers a select group of management and/or highly compensated employees. The plan
provides for cliff-vesting when the individual reaches a certain age and remains employed by Children’s
Miracle Network. The liability for these plans as of August 31, 2008 and 2007 was $1,358,588 and
$1,038,116, respectively, and is contained in other liabilities on the statement of financial position.
The total expense recognized for both of these plans during 2008 and 2007 was approximately $1.1
million and 1 million, respectively.
NOTE J – RELATED PARTY TRANSACTIONS
The Organization engaged in the following related party transactions in 2008 and 2007:
•
During 2008, the Organization entered into a $2.5 million mortgage for renovations on its new
headquarters building. The Executive Vice-President and Chief Operating Officer of Children’s
Miracle Network was a member of the Board of Directors of the lending institution during 2008.
•
During 2008, the Organization contributed $150,000 to the Osmond 50th Anniversary
celebration. Certain members of the Osmond family are on the Board of Trustees.
19
August 31, 2008 and 2007
NOTE K - CONCENTRATIONS OF CREDIT RISK
Financial instruments that potentially subject the Organization to concentrations of credit risk consist
principally of cash, cash equivalents and investments. The Organization places its cash and investments
with high credit quality financial institutions and generally limits the amount of credit exposure to the
amount in excess of the FDIC insurance coverage limit of $100,000 (limit as of August 31, 2008).
From time to time throughout the year, the Organization’s cash and investment balances may exceed
the amount of the FDIC insurance coverage. The Organization, however, does not anticipate
nonperformance by the institutions.
NOTE L – SUBSIDIARIES
During 2008, Children’s Miracle Network Ireland was established as a wholly owned subsidiary of
Children’s Miracle Network with charity status granted by the Charities Section of the Office of the
Revenue Commissioners. Operations commenced on April 9, 2008, and the consolidated financial
statements as of and for the year ended August 31, 2008 include Children’s Miracle Network Ireland.
During 2007, Children’s Miracle Network UK was established as a wholly-owned subsidiary of
Children’s Miracle Network with charity status granted by the Charity Commission of the United
Kingdom. Operations commenced on September 1, 2007; and the consolidated financial statements
dated August 31, 2007 contain no assets, liabilities, net assets, revenues and gains, or expenses and
losses associated with Children’s Miracle Network UK.
During 2008, Children’s Miracle Network Australia was established as a wholly-owned subsidiary of
Children’s Miracle Network. Operations commenced on August 1, 2008, and the consolidated
financial statements dated August 31, 2008 contain no assets, liabilities, net assets, revenues and gains,
or expenses and losses associated with Children’s Miracle Network Australia.
During 2008, Cure Kids’ Cancer was merged into Children’s Miracle Network. All assets, liabilities and
net assets were transferred to Children’s Miracle Network. Fundraising for pediatric cancer care and
research will continue within Children’s Miracle Network under the separate Cure Kids’ Cancer brand.
NOTE M – SUBSEQUENT EVENTS (UNAUDITED)
Subsequent to year end, the Organization secured long-term financing from the Redevelopment
Agency (RDA) of Salt Lake City to provide the balance of funds for renovating its new international
headquarters building. The RDA arrangement is a $2.5 million loan that is amortized over 20-years at 3
percent interest with a required balloon payment at the end of 10 years.
Subsequent to year end, the Organization settled a portion of the Supplemental Executive Retirement
Plan liability. Approximately $1 million was paid to the founder and former CEO of the Organization.
20
August 31, 2008 and 2007
NOTE M – SUBSEQUENT EVENTS (UNAUDITED) – CONTINUED
Subsequent to year end, the Organization’s investment portfolio has declined by approximately $2.3
million through the end of December 2008. The Organization has the ability and intent to hold these
investments for a period it believes will be sufficient to allow for recovery of the investment balances.
Subsequent to year end, the value of certain intercompany payables and receivables has changed due to
changes in foreign currency exchange rates. However, these changes are not material to the financial
statements.
Children’s Miracle Network International Headquarters
205 West 700 South
Salt Lake City, Utah 84101
PHONE: 801-214-7400
FAX: 801-746-6688
Children’s Miracle Network Canada Office
4220 Steeles Ave. West, Suite C10
Woodbridge, Ontario L4L 3S8
PHONE: 905-265-9750
FAX: 905-265-9749
Children’s Miracle Network U.K. & Ireland Office
Foresters House
Cromwell Avenue
Bromley BR2 9BF
PHONE: 0207 558 8627
ChildrensMiracleNetwork.org
093050

About Us - Children`s Miracle Network Hospitals

Transcription

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