Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $9,926,591

• 1e · Government grants (contributions)

  $1,472,431

• 2a · Program service revenue: PMTS FOR MEDICAL SVCS

  total $112,953,289 · related or exempt $112,953,289

• 3 · Investment income

  total $3,064,936 · excluded $3,064,936

• 11a · Other revenue: NUTRITIONAL SERVICES

  total $809,476 · excluded $809,476

• 11b · Other revenue: GIFT SHOP

  total $226,096 · excluded $226,096

• 11d · All other revenue

  total $376,936 · related or exempt $376,936

• 11e · Other revenue, total

  $1,412,508

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $8,405,431 · program services $8,405,431

• 2 · Grants to domestic individuals

  total $127,228 · program services $127,228

• 5 · Compensation of officers, directors and key employees

  total $1,974,956 · program services $980,602 · management and general $994,354

• 7 · Other salaries and wages

  total $38,051,184 · program services $34,599,228 · management and general $3,451,956

• 9 · Other employee benefits

  total $7,835,994 · program services $7,205,735 · management and general $630,259

• 11a · Fees: management

  total $5,842,057 · program services $2,674,955 · management and general $3,167,102

• 11c · Fees: accounting

  total $9,610 · management and general $9,610

• 11g · Fees: other

  total $16,962,521 · program services $14,439,625 · management and general $2,522,896

• 12 · Advertising and promotion

  total $399,989 · program services $25,000 · management and general $374,989

• 13 · Office expenses

  total $1,345,505 · program services $1,138,763 · management and general $206,742

• 14 · Information technology

  total $3,177,890 · program services $1,053,718 · management and general $2,124,172

• 16 · Occupancy

  total $1,678,055 · program services $779,386 · management and general $898,669

• 17 · Travel

  total $178,220 · program services $143,815 · management and general $34,405

• 19 · Conferences, conventions and meetings

  total $77,656 · program services $72,803 · management and general $4,853

• 20 · Interest

  total $2,581,694 · management and general $2,581,694

• 22 · Depreciation, depletion and amortization

  total $8,111,569 · program services $6,552,953 · management and general $1,558,616

• 23 · Insurance

  total $578,560 · program services $289,240 · management and general $289,320

• 24a · Other expenses: MEDICAL SUPPLIES

  total $18,152,286 · program services $18,040,606 · management and general $111,680

• 24b · Other expenses: MISC ADMIN EXPENSES

  total $1,421,701 · program services $1,363,536 · management and general $58,165

• 24c · Other expenses: MINOR EQUIPMENT

  total $1,200,667 · program services $228,576 · management and general $972,091

• 24d · Other expenses: DUES & SUBSCRIPTIONS

  total $203,989 · program services $93,648 · management and general $110,341

Balance sheet

Part X, book values.

• 2 · Savings and temporary cash investments

  beginning of year $49,784,748 · end of year $54,245,115

• 4 · Accounts receivable

  beginning of year $12,372,725 · end of year $16,230,105

• 8 · Inventories for sale or use

  beginning of year $1,654,013 · end of year $1,180,408

• 9 · Prepaid expenses and deferred charges

  beginning of year $1,018,661 · end of year $1,232,566

• 10a · Land, buildings and equipment: cost or other basis

  $173,876,237

• 10b · Land, buildings and equipment: accumulated depreciation

  $56,274,683

• 10c · Land, buildings and equipment, net

  beginning of year $114,294,112 · end of year $117,601,554

• 11 · Investments: publicly traded securities

  beginning of year $1,783,168 · end of year $1,829,613

• 15 · Other assets

  beginning of year $51,724,266 · end of year $56,555,793

• 17 · Accounts payable and accrued expenses

  beginning of year $6,124,480 · end of year $10,912,723

• 20 · Tax-exempt bond liabilities

  beginning of year $68,211,163 · end of year $65,284,416

• 25 · Other liabilities

  beginning of year $6,609,558 · end of year $10,533,007

• 27 · Net assets without donor restrictions

  beginning of year $134,287,997 · end of year $141,944,007

• 28 · Net assets with donor restrictions

  beginning of year $17,398,495 · end of year $20,201,001

The filer's explanations (Part III)

PART I, LINE 1A

CHARTER TRAVEL IS USED BY ARKANSAS CHILDREN'S AND AFFILIATED ENTITIES' BOARD MEMBERS AND STAFF (AND OCCASIONALLY ACCOMPANYING SPOUSES/COMPANIONS) WHEN IT IS DEEMED THE MOST EFFICIENT METHOD OF TRAVEL TO DISTANT AREAS WITHIN THE STATE OR TO SURROUNDING STATES FOR PURPOSES RELATED TO ARKANSAS CHILDREN'S BUSINESS. SEPARATE (NON-CHARTER) TRAVEL FOR COMPANIONS IS REIMBURSED BY THE EMPLOYEE IF SUCH TRAVEL IS ON AN INDIVIDUAL BASIS; THUS, SUCH TRAVEL IS NOT CONSIDERED TAXABLE COMPENSATION TO THE EMPLOYEE. THREE OFFICERS/EMPLOYEES USED CHARTER TRAVEL DURING THE CALENDAR YEAR. BECAUSE THE CHARTER TRAVEL WAS USED FOR ARKANSAS CHILDREN'S BUSINESS PURPOSES, IT WAS NOT CONSIDERED AS TAXABLE WAGES.

PART I, LINE 3

COMPENSATION FOR ANY ACNW EXECUTIVE OR SENIOR OFFICER (PRESIDENT; EXECUTIVE VICE PRESIDENT; SENIOR VICE PRESIDENT) WHO IS NOT A CONTRACTED UAMS EMPLOYEE IS REVIEWED BY THE ARKANSAS CHILDREN'S HUMAN RESOURCES AND COMPENSATION COMMITTEE WHICH IS ESTABLISHED THROUGH THE BYLAWS OF ARKANSAS CHILDREN'S, INC. THE COMMITTEE HAS THE FULL AUTHORITY AND SPECIFIC RESPONSIBILITY FOR REVIEWING AND APPROVING EXECUTIVE COMPENSATION PRACTICES AS IT RELATES TO BASE SALARY, INCENTIVE COMPENSATION AND TOTAL REMUNERATION TARGETS. THE COMMITTEE HAS SPECIFIC RESPONSIBILITY FOR DETERMINING COMPENSATION FOR THE HEALTH SYSTEM PRESIDENT/CEO AND FOR APPROVAL OF RECOMMENDATIONS MADE BY THE CEO FOR POSITIONS DEEMED AS "DISQUALIFIED PERSONS" UNDER SECTION 4958 OF THE CODE. THE POLICIES AND PROGRAMS REVIEWED AND APPROVED BY THE COMMITTEE SHALL BE DESIGNED TO ENSURE THAT THE CORPORATION AND ITS AFFILIATES REMAIN COMPETITIVE AND REASONABLE RELATIVE TO THE COMPENSATION AND TOTAL REMUNERATION OF SIMILARLY SITUATED HEALTH SYSTEMS LOCALLY AND NATIONALLY, AND TO PERMIT THE CORPORATION AND SUCH AFFILIATES TO ATTRACT AND RETAIN SUPERIOR EXECUTIVES IN FURTHERANCE OF THE CORPORATION'S AND AFFILIATES PURPOSES. IN ITS PROCESS, THE COMMITTEE SHALL OBTAIN AND MUST RELY UPON APPROPRIATE DATA AS TO COMPARABILITY PRIOR TO MAKING ITS DETERMINATION OF REASONABLENESS WITH RESPECT TO THE COMPENSATION ARRANGEMENTS OF DISQUALIFIED PERSONS. APPROPRIATE DATA INCLUDES, BUT IS NOT LIMITED TO, COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS, BOTH TAXABLE AND TAX-EXEMPT, FOR FUNCTIONALLY COMPARABLE POSITIONS, CURRENT COMPENSATION SURVEYS COMPILED BY INDEPENDENT FIRMS; THE COMMITTEE MAY RELY UPON OPINIONS OF QUALIFIED LEGAL, ACCOUNTING, VALUATION AND EXECUTIVE COMPENSATION EXPERTS. CONTEMPORANEOUSLY WITH MAKING ITS DETERMINATION OF REASONABLENESS WITH RESPECT TO THE COMPENSATION ARRANGEMENT OF THE CEO AND DISQUALIFIED PERSONS, THE COMMITTEE SHALL DOCUMENT IN ITS MINUTES THE BASIS FOR ITS DECISIONS. A VERBAL REPORT IS PROVIDED TO THE BOARD BY THE CHAIR OF THE COMMITTEE. MINUTES ARE AVAILABLE FOR REVIEW UPON BOARD MEMBER REQUEST TO THE BOARD CHAIR.

PART I, LINE 4B

THE ARKANSAS CHILDREN'S DEFERRED COMPENSATION PLAN (DCP), WAS INSTITUTED ON 6/30/2014. THE DCP IS A 457(F) NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN, PROVIDING ANNUAL CONTRIBUTIONS TO CERTAIN EXECUTIVES AT A PERCENTAGE OF THEIR BASE SALARY IN EFFECT ON JUNE 30 OF THE PLAN YEAR. THE SUPPLEMENTAL COMPENSATION SERVES TO ENCOURAGE CONTINUED EMPLOYMENT WITH ARKANSAS CHILDREN'S AND ITS AFFILIATES. THE PLAN PROVIDES THAT DEFERRED AMOUNTS ARE PAID AS SOON AS ADMINISTRATIVELY POSSIBLE AFTER BEING VESTED. IT IS INTENDED THAT SUCH PAYMENTS QUALIFY FOR THE "SHORT-TERM DEFERRAL" EXEMPTION FROM IRC SECTION 409A, AND FOR TAX DEFERRAL UNDER IRC SECTION 457(F). PER THE PLAN DOCUMENT, EACH DCP CONTRIBUTION FOR A PLAN YEAR AND ITS ASSOCIATED EARNINGS VEST AS FOLLOWS, ON THE EARLIER OF: - (SUBACCOUNT); THE FIRST DAY OF THE PLAN YEAR FOLLOWING THREE (3) CONTINUOUS PLAN YEARS OF EMPLOYMENT BY THE PARTICIPANT WITH ARKANSAS CHILDREN'S OR AFFILIATE, WHICH BEGINS ON THE FIRST DAY OF THE PLAN YEAR FOR WHICH THE CONTRIBUTION IS CREDITED. - (PRIMARY ACCOUNT, INCLUDING SUBACCOUNTS) - ATTAINMENT OF AGE 65 AND AT LEAST 3 YEARS OF SERVICE AS A DCP PARTICIPANT - (PRIMARY ACCOUNT, INCLUDING SUBACCOUNTS) - DEATH OR PERMANENT DISABILITY - (PRIMARY ACCOUNT, INCLUDING SUBACCOUNTS) - INVOLUNTARY TERMINATION (OTHER THAN FOR CAUSE) - (PRIMARY ACCOUNT, INCLUDING SUBACCOUNTS) - PLAN TERMINATION FOR TAX YEAR 2023 (FISCAL YEAR 2024), FOUR REPORTABLE EMPLOYEES WERE ELIGIBLE AND PARTICIPATING IN THE DEFERRED COMPENSATION PLAN. SOME OF THESE EMPLOYEES RECEIVED DISTRIBUTIONS PER THE PLAN DOCUMENT. SUCH AMOUNTS ARE NOTED BELOW. - MARCELLA DODERER: AC/ACH/ACNW PRESIDENT/CEO - $237,142 - GENA WINGFIELD: AC EVP AND CFO - $66,700 PER THE PLAN DOCUMENT, UPON BECOMING VESTED IN A PLAN YEAR SUBACCOUNT AND AS SOON AS ADMINISTRATIVELY PRACTICABLE AFTER SUCH VESTING DATE, BUT NO LATER THAN THE END OF THE CALENDAR YEAR IN WHICH SUCH VESTING DATE OCCURRED, INDIVIDUAL PARTICIPANTS WILL BE PAID A LUMP SUM PAYMENT EQUAL TO THE PLAN YEAR SUBACCOUNT BALANCE AS OF THE JUNE 30 IMMEDIATELY PRECEDING SUCH VESTING DATE.

FORM 990, SCHEDULE J, PART I, LINES 5-7

THE INCENTIVE PLANS FOR ALL ENTITIES HAVE SPECIFIC RULES AND CALCULATIONS FOR BONUSES. NONE ARE CONTINGENT ON REVENUES OR NET EARNINGS OF THE ORGANIZATIONS (ANY), AND SINCE THEY ARE CALCULATED BASED ON A SPECIFIC FORMULA, THEY ARE NOT "NON-FIXED".

FORM 990, PART VII, SECTION A, LINE 5:

DIRECTOR AND CHIEF OF STAFF, ROBERT SAYLORS, M.D. WAS COMPENSATED BY UAMS AS AN EMPLOYEE FOR SERVICES RENDERED TO ARKANSAS CHILDREN'S HOSPITAL (ACH) AND ARKANSAS CHILDREN'S NORTHWEST (ACNW) FOR WHICH ACH REMITTED PAYMENT LISTED AS "REPORTABLE COMPENSATION FROM RELATED ORGANIZATIONS" IN PART VII. THE AMOUNT NOTED AS COMPENSATION IN SCHEDULE J FOR THE PHYSICIAN NOTED ABOVE WAS THE DESIGNATED AMOUNT PER THE RELATED CONTRACT WITH UAMS.

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• CHILDREN'S HEALTHCARE SYSTEM INC

  C · MANAGEMENT SERVICES · AR

• ARKANSAS CHILDREN'S CARE NETWORK

  C · CLINICALLY INTEGRATED NETWORK · AR

• SACOVA INSURANCE COMPANY LTD

  C · CAPTIVE INSURANCE COMPANY · CJ