lefile GRAPHIC print - DO NOT PROCESS I As Filed Data - I DLN: 934932520078541

Form990 Return of Organization Exempt From Income Tax

Under section 501 (c), 527, or 4947(a)(1) of the Internal Revenue Code ( except privatefoundations)

Department of the Treasury Do not enter Social Security numbers on this form as it may be made public By law, the IRS

Internal Revenue Service generally cannot redact the information on the form- Information about Form 990 and its instructions is at www.IRS.gov/form990

For the 2013 calendar year, or tax year beginning 01-01-2013 , 2013, and ending 12-31-2013

OMB No 1545-0047

2013

B Check if applicableC Name of organization D Employer identification number

Winifred Masterson Burke Medical Res Ins IncF Address change 13-3434924

Doing Business AsName change

1 Initial return Number and street (or P 0 box if mail is not delivered to street address) Room/suite E Telephone number785 Mamaroneck Avenue

p Terminated(914)597-2240

-( Amended return City or town, state or province, country, and ZIP or foreign postal codeWhite Plains, NY 10605

1 Application pending G Gross receipts $ 12,890,613

F Name and address of principal officer H(a) Is this a group return forRajiv Ratan MDPhD subordinates? fl Yes F No785 Mamaroneck AveWhite Plains, NY 10605 H(b) Are all subordinates 1 Yes (- No

included?

I Tax-exempt status F 501(c)(3) 1 501(c) ( ) I (insert no (- 4947(a)(1) or F_ 527 If "No," attach a list (see instructions)

J Website : - www burke org H(c) Group exemption number 0-

K Form of organization F Corporation 1 Trust F_ Association (- Other 0- L Year of formation 1988 M State of legal domicile NY

Summary

1 Briefly describe the organization's mission or most significant activitiesTHE BURKE MEDICAL RESEARCH INSTITUTE WORKS IN CONJUNCTION WITH THE BURKE REHAB HOSPITAL AND WEILLCORNELL MC TO DEVELOP NEWTHERAPEUTIC APPROACHES TO STROKE,SPINAL CORD INJURY,TBI AND ALZEIMERSDISEASE

2 Check this box if the organization discontinued its operations or disposed of more than 25% of its net assets

r;r 3 Number of voting members of the governing body (Part VI, line la) . . . . . . . 3 25

4 N umber of independent voting members of the governing body (Part VI, line 1 b) . 4 21

5 Total number of individuals employed in calendar year 2013 (Part V, line 2a) . 5 101

6 Total number of volunteers (estimate if necessary) 6 5

7a Total unrelated business revenue from Part VIII, column (C), line 12 . 7a 0

b Net unrelated business taxable income from Form 990-T, line 34 . . . . . . . . 7b

Prior Year Current Year

8 Contributions and grants (Part VIII, line 1h) . 11,641,589 12,775,478

9 Program service revenue (Part VIII, line 2g) 0

N 10 Investment income (Part VIII, column (A), lines 3, 4, and 7d . 0

11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 86,677 115,135

12 Total revenue-add lines 8 through 11 (must equal Part VIII, column (A), line12) . . . . . . . . . . . . . . . . . . . 11,728,266 12,890,613

13 Grants and similar amounts paid (Part IX, column (A), lines 1-3) 0

14 Benefits paid to or for members (Part IX, column (A), line 4) . 0

15 Salaries, other compensation, employee benefits (Part IX, column (A), lines5-10) 6,238,452 6,802,870

16a Professional fundraising fees (Part IX, column (A), line 11e) 0

LLJb Total fundraising expenses (Part IX, column (D), line 25) 0-0

17 Other expenses (Part IX, column (A), lines 11a-11d, 11f-24e) . . . . 6,851,946 7,476,550

18 Total expenses Add lines 13-17 (must equal Part IX, column (A), line 25) 13,090,398 14,279,420

19 Revenue less expenses Subtract line 18 from line 12 -1,362,132 -1,388,807

Beginning of CurrentEnd of Year

Year

-AM

20 Total assets (Part X, line 16) 13,530,496 13,830,620

%TS 21 Total liabilities (Part X, line 26) . . . . . . . . . . . . 8,964,113 9,281,510

ZLL 22 Net assets or fund balances Subtract line 21 from line 20 4,566,383 4,549,110

lijaW Signature Block

Under penalties of perjury, I declare that I have examined this return, includinmy knowledge and belief, it is true, correct, and complete Declaration of prepspreparer has any knowledge

SignSignature of officer

Here Rajiv Ratan MD Vice President

Type or print name and title

Print/Type preparer's name Preparers signatureSCOTT EDELMAN

PaidFirm's name 1- WINIFRED MASTERSON BURKE FOUNDATION

Pre pare rUse Only Firm's address 0-785 MAMARONECK AVE

WHITE PLAINS, NY 10605

May the IRS discuss this return with the preparer shown above? (see instructs

For Paperwork Reduction Act Notice, see the separate instructions.

Form 990 ( 2013) Page 2

Statement of Program Service AccomplishmentsCheck if Schedule 0 contains a response or note to any line in this Part III .(-

1 Briefly describe the organization 's mission

STROKE, SPINAL CORD INJURY, TRAUMATIC BRAIN INJURY AND ALZHEIMERS DISEASE ARE LEADING CAUSES OF DISABILITY INTHE U S THE BURKE MEDICAL RESEARCH INSTITUTE WORKS IN CONJUNCTION WITH THE BURKE REHABILITATION HOSPITALAND WEILL CORNELL MEDICAL COLLEGE TO DEVELOP NEWTHERAPEUTIC APPROACHES TO THESE IMPAIRMENTS

2 Did the organization undertake any significant program services during the year which were not listed onthe prior Form 990 or 990-EZ7 . . . . . . . . . . . . . . . . . . . . . . fl Yes F No

If "Yes," describe these new services on Schedule 0

3 Did the organization cease conducting , or make significant changes in how it conducts, any programservices? . . . . . . . . . . . . . . . . . . . . . . . . . . . . F Yes F7 No

If "Yes," describe these changes on Schedule 0

4 Describe the organization 's program service accomplishments for each of its three largest program services, as measured byexpenses Section 501(c)(3) and 501 (c)(4) organizations are required to report the amount of grants and allocations to others,the total expenses , and revenue , if any, for each program service reported

4a (Code ) ( Expenses $ 7,862,301 including grants of $ ) (Revenue $

MEDICAL RESEARCH INVOLVING NEUROLOGICAL RELATED DISEASES, SUCH AS DEMENTIA, ALZHEIMERS PARKINSONS THE BURKE MEDICAL RESEARCH INSTITUTESEEKS TO HARNESS THE BEST IN CONTEMPORARY NEUROSCIENCE TO ADVANCE INTERVENTIONS TO IMPROVE BRAIN REPAIR AND RECOVERY OF FUNCTION FROMALL NEUROLOGICAL DISEASES THIS ENDEAVOR IS ACTIVELY ADVANCED BY FREQUENT LIVELY INTERCHANGE BETWEEN SCIENTISTS WORKING ON NOVELPHARMACOLOGICAL, BIOLOGICAL AND ROBOTIC APPROACHES TO REPAIR THE DAMAGED BRAIN THE BURKE MEDICAL RESEARCH INSTITUTE AND THE BURKEREHABILITATION HOSPITAL ARE EXPERTS IN THE REHABILITATION OF NEUROLOGICAL DISEASES, WHO ARE COMMITTED TO HELP TRANSLATE THESE APPROACHESTO THE BEDSIDE HOWEVER, WE ARE FAR FROM REACHING OUR CLINICAL GOALS AND POTENTIAL, THE LACK OF BRAIN REPAIR AND CONSEQUENT DISABILITYREMAINS A LARGE AND ALMOST SILENT EPIDEMIC

4b (Code ) ( Expenses $ including grants of $ ) (Revenue $

4c (Code ) ( Expenses $ including grants of $ ) (Revenue $

4d Other program services ( Describe in Schedule 0

(Expenses $ including grants of $ ) (Revenue $

4e Total program service expenses 1- 7,862,301

Form 990 (2013)

Form 990 (2013) Page 3

Checklist of Required Schedules

Yes No

1 Is the organization described in section 501(c)(3) or4947(a)(1) (other than a private foundation)? If "Yes," Yes

complete Schedule As . . . . . . . . . . . . . . . . . . . . . . . 1

2 Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? 2 Yes

3 Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to Nocandidates for public office? If "Yes,"complete Schedule C, Part I . . . . . . . . . . 3

4 Section 501 ( c)(3) organizations . Did the organization engage in lobbying activities, or have a section 501(h) Noelection in effect during the tax year? If "Yes,"complete Schedule C, Part II . . . . . . . 4

5 Is the organization a section 501 (c)(4), 501 (c)(5), or 501(c)(6) organization that receives membership dues,assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes," complete Schedule C,Part III . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 N o

6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have theright to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes,"completeSchedule D, Part I . . . . . . . . . . . . . . . . . . . . . . . 6 N o

7 Did the organization receive or hold a conservation easement, including easements to preserve open space,the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part II . . 7 No

8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes,"complete Schedule D, Part III . . . . . . . . . . . . . . . . . . . 8 N o

9 Did the organization report an amount in Part X, line 21 for escrow or custodial account liability, serve as acustodian for amounts not listed in Part X, or provide credit counseling, debt management, credit repair, or debtnegotiation services? If "Yes," complete Schedule D, Part IV . . . . . . . . . . . . . . 9 No

10 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, 10 Nopermanent endowments, or quasi-endowments? If "Yes,"complete Schedule D, Part V . . . . . .

11 If the organization's answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII,VIII, IX, or X as applicable

a Did the organization report an amount for land, buildings, and equipment in Part X, line 10?

If "Yes," complete Schedule D, Part VI. . . . . . . . . . . . . . . . . . . . lla Yes

b Did the organization report an amount for investments-other securities in Part X, line 12 that is 5% or more ofits total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VII . . . . . . lib No

c Did the organization report an amount for investments-program related in Part X, line 13 that is 5% or more ofits total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIII . . . . . . llc No

d Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assetsreported in Part X, line 16? If "Yes," complete Schedule D, Part IX . . . . . . . . . . . lid No

e Did the organization report an amount for other liabilities in Part X, line 25? If "Yes," complete Schedule D, Part Xl le N o

f Did the organization's separate or consolidated financial statements for the tax year include a footnote thatllf No

addresses the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes,"completeSchedule D, Part X . . . . . . . . . . . . . . . . . . . . . . . . .

12a Did the organization obtain separate, independent audited financial statements for the tax year?If "Yes," complete Schedule D, Parts XI and XII . . . . . . . . . . . . . . . . 12a N o

b Was the organization included in consolidated, independent audited financial statements for the tax year? If12b Yes

"Yes," and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional S

13 Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes," completeScheduleE13 No

14a Did the organization maintain an office, employees, or agents outside of the United States? . 14a No

b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising,business, investment, and program service activities outside the United States, or aggregate foreign investmentsvalued at $100,000 or more? If "Yes," complete Schedule F, Parts I and IV . . . . . . . . 14b No

15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to orfor any foreign organization? If "Yes," complete Schedule F, Parts II and IV 15 No

16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or otherassistance to or for foreign individuals? If "Yes," complete Schedule F, Parts III and IV . . 16 No

17 Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part 17 NoIX, column (A), lines 6 and 11e? If "Yes," complete Schedule G, Partl (seeinstructions) . . . .

18 Did the organization report more than $15,000 total of fundraising event gross income and contributions on PartVIII, lines 1c and 8a? If "Yes," complete Schedule G, Part II . . . . . . . . . . . 18 No

19 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If 19 No"Yes," complete Schedule G, Part III . . . . . . . . . . . . . . . . . . .

20a Did the organization operate one or more hospital facilities? If "Yes,"completeScheduleH . . 20a No

b If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return?20b

Form 990 (2013)

Form 990 (2013) Page 4

Checklist of Required Schedules (continued)

21 Did the organization report more than $5,000 of grants or other assistance to any domestic organization or 21government on Part IX, column (A), line 1? If "Yes, "complete Schedule I, Parts I and II . . .

22 Did the organization report more than $5,000 of grants or other assistance to individuals in the United States on 22Part IX, column (A), line 2? If "Yes," complete Schedule I, Parts I and III . . . . . . . .

23 Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organization'scurrent and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," 23

complete Schedule J . . . . . . . . . . . . . . . . . . . . . . . IN I

24a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000as of the last day of the year, that was issued after December 31, 2002? If"Yes," answer lines 24b through 24dand complete Schedule K. If "No,"go to line 25a . . . . . . . . . . . . . . . 24a

b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? . 24b

c Did the organization maintain an escrow account other than a refunding escrow at any time during the yearto defease any tax-exempt bonds? . 24c

d Did the organization act as an on behalf of issuer for bonds outstanding at any time during the year? . 24d

25a Section 501(c)( 3) and 501 ( c)(4) organizations . Did the organization engage in an excess benefit transaction witha disqualified person during the year? If "Yes," complete Schedule L, Part I . . . . . . . 25a

b Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prioryear, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ? If 25b

"Yes," complete Schedule L, Part I . . . . . . . . . . . . . . . . . . .

26 Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any currentor former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? 26If so, complete Schedule L, Part II . . . . . . . . . . . . . . . . . . . .

27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantialcontributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family 27member of any of these persons? If "Yes," complete Schedule L, Part III . . . . . . . . .

28 Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IVinstructions for applicable filing thresholds, conditions, and exceptions)

a A current or former officer, director, trustee, or key employee? If "Yes,"complete Schedule L, PartIV . . . . . . . . . . . . . . . . . . . . . . . . . . 28a

b A family member of a current or former officer, director, trustee, or key employee? If "Yes,"complete Schedule L, Part IV . . . . . . . . . . . . . . . . . . . . 28b

c A n entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) wasan officer, director, trustee, or direct or indirect owner? If "Yes,"complete Schedule L, Part IV . . 28c

29 Did the organization receive more than $25,000 in non-cash contributions? If "Yes,"completeScheduleM 29

30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualifiedconservation contributions? If "Yes," complete Schedule M . . . . . . . . . . . . 30

31 Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N,Part I . . . . . . . . . . . . . . . . . . . . . . . . . . 31

32 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes, " completeSchedule N, Part II . . . . . . . . . . . . . . . . . . . . . 32

33 Did the organization own 100% of an entity disregarded as separate from the organization under Regulationssections 301 7701-2 and 301 7701-3? If "Yes," complete Schedule R, PartI . . . . . . . 33

34 Was the organization related to any tax-exempt or taxable entity? If "Yes,"complete Schedule R, Part II, III, orIV,

and Part V, line 1 . . . . . . . . . . . . . . . . . . . . . . . . 95 34

35a Did the organization have a controlled entity within the meaning of section 512(b)(13)?35a

b If'Yes'to line 35a, did the organization receive any payment from or engage in any transaction with a controlled35b

entity within the meaning of section 512 (b)(13 )? If "Yes,"complete Schedule R, Part V, line 2 . . .

36 Section 501(c)( 3) organizations . Did the organization make any transfers to an exempt non-charitable relatedorganization? If "Yes,"complete Schedule R, Part V, line 2 . . . . . . . . . . . . 36

37 Did the organization conduct more than 5 % of its activities through an entity that is not a related organizationand that is treated as a partnership for federal income tax purposes? If "Yes," complete Schedule R, Part VI 37

38 Did the organization complete Schedule 0 and provide explanations in Schedule 0 for Part VI, lines 1 lb and 19?Note . All Form 990 filers are required to complete Schedule 0 . . . . . . . . . . . 38

No

No

Yes

No

No

No

No

No

No

No

No

No

No

No

No

No

Yes

No

No

No

Yes

Form 990 (2013)

Form 990 (2013) Page 5

MEW-Statements Regarding Other IRS Filings and Tax Compliance

Check if Schedule 0 contains a response or note to any line in this Part V (-

Yes No

la E nter the number reported in Box 3 of Form 1096 Enter -0- if not applicable . la 16

b Enter the number of Forms W-2G included in line la Enter-0- if not applicable lb 0

c Did the organization comply with backup withholding rules for reportable payments to vendors and reportablegaming (gambling) winnings to prize winners? . . . . . . . . . . . . . . . . . 1c Yes

2a Enter the number of employees reported on Form W-3, Transmittal of Wage andTax Statements, filed for the calendar year ending with or within the year coveredby this return . . . . . . . . . . . . . . . . . 2a 101

b If at least one is reported on line 2a, did the organization file all required federal employment tax returns?2b Yes

Note . If the sum of lines la and 2a is greater than 250, you may be required to e-file (see instructions)

3a Did the organization have unrelated business gross income of $1,000 or more during the year? . . 3a No

b If "Yes," has it filed a Form 990-T for this year? If 'No" to line 3b, provide an explanation in Schedule O . . 3b

4a At any time during the calendar year, did the organization have an interest in, or a signature or other authorityover, a financial account in a foreign country (such as a bank account, securities account, or other financialaccount)? . . . . . . . . . . . . . . . . . . . . . . . . . . 4a No

b If "Yes," enter the name of the foreign country 0-See instructions for filing requirements for Form TD F 90-22 1, Report of Foreign Bank and Financial Accounts

5a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? . .

b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?

c If "Yes," to line 5a or 5b, did the organization file Form 8886-T?

6a Does the organization have annual gross receipts that are normally greater than $100,000, and did theorganization solicit any contributions that were not tax deductible as charitable contributions? . .

b If "Yes," did the organization include with every solicitation an express statement that such contributions or giftswere not tax deductible? .

7 Organizations that may receive deductible contributions under section 170(c).

a Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods andservices provided to the payor? .

b If "Yes," did the organization notify the donor of the value of the goods or services provided? . .

c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required tofile Form 82827 .

d If "Yes," indicate the number of Forms 8282 filed during the year 7d

e Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefitcontract? .

f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?

g If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 asrequired? .

h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file aForm 1098-C? .

8 Sponsoring organizations maintaining donor advised funds and section 509(a )( 3) supporting organizations. Didthe supporting organization, or a donor advised fund maintained by a sponsoring organization, have excessbusiness holdings at any time during the year? .

9 Sponsoring organizations maintaining donor advised funds.

a Did the organization make any taxable distributions under section 4966? . .

b Did the organization make a distribution to a donor, donor advisor, or related person? . .

10 Section 501(c)( 7) organizations. Enter

a Initiation fees and capital contributions included on Part VIII, line 12 . 10a

b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club 10bfacilities

11 Section 501(c)( 12) organizations. Enter

a Gross income from members or shareholders . . . . . . . . 11a

b Gross income from other sources (Do not net amounts due or paid to other sourcesagainst amounts due or received from them ) . . . . . . . . . 11b

12a Section 4947( a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?

b If "Yes," enter the amount of tax-exempt interest received or accrued during theyear . . . . . . . . . . . . . . . . . . . 12b

13 Section 501(c)( 29) qualified nonprofit health insurance issuers.

a Is the organization licensed to issue qualified health plans in more than one state?Note . See the instructions for additional information the organization must report on Schedule 0

b Enter the amount of reserves the organization is required to maintain by the statesin which the organization is licensed to issue qualified health plans 13b

c Enter the amount of reserves on hand 13c

5a N o

5b N o

5c

6a N o

6b

7a N o

7b

7c N o

7e N o

7f N o

7g

7h

8

9a

9b

12a

13a

14a Did the organization receive any payments for indoor tanning services during the tax year? . . . 14a No

b If "Yes," has it filed a Form 720 to report these payments? If "No,"provide an explanation in Schedule 0 . 14b

Form 990 (2013)

Form 990 ( 2013) Page 6

Lam Governance , Management, and Disclosure For each "Yes" response to lines 2 through 7b below, and for a"No" response to lines 8a, 8b, or 1Ob below, describe the circumstances, processes, or changes in Schedule 0.See instructions.Check if Schedule 0 contains a response or note to any line in this Part VI .F

Section A. Governing Body and Management

la Enter the number of voting members of the governing body at the end of the taxla 25

year

If there are material differences in voting rights among members of the governingbody, or if the governing body delegated broad authority to an executive committeeor similar committee, explain in Schedule 0

b Enter the number of voting members included in line la, above, who areindependent . . . . . . . . . . . . . . . . . lb 21

2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with anyother officer, director, trustee, or key employee?

3 Did the organization delegate control over management duties customarily performed by or under the directsupervision of officers, directors or trustees, or key employees to a management company or other person?

4 Did the organization make any significant changes to its governing documents since the prior Form 990 wasfiled?

5 Did the organization become aware during the year of a significant diversion of the organization's assets?

6 Did the organization have members or stockholders?

7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one ormore members of the governing body? . .

b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders,or persons other than the governing body?

8 Did the organization contemporaneously document the meetings held or written actions undertaken during theyear by the following

a The governing body?

b Each committee with authority to act on behalf of the governing body?

9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at theorganization's mailing address? If "Yes,"provide the names and addresses in Schedule 0 . . . . . . .

Yes I No

2 No

3 No

4 No

5 No

6 No

7a N o

7b No

8a Yes

8b Yes

9 1 1 No

Section B. Policies ( This Section B requests information about p olicies not required b y the Internal Revenue Code.)Yes No

10a Did the organization have local chapters, branches, or affiliates? 10a No

b If "Yes," did the organization have written policies and procedures governing the activities of such chapters,affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? 10b

11a Has the organization provided a complete copy of this Form 990 to all members of its governing body before filingthe form? . . . . . . . . . . . . . . . . . . . . . . . . . . . 11a Yes

b Describe in Schedule 0 the process, if any, used by the organization to review this Form 990

12a Did the organization have a written conflict of interest policy? If "No,"go to line 13 . 12a Yes

b Were officers, directors, or trustees, and key employees required to disclose annually interests that could giverise to conflicts? . . . . . . . . . . . . . . . . . . . . . . . . . 12b Yes

c Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes," describein Schedule 0 how this was done . 12c Yes

13 Did the organization have a written whistleblower policy? 13 Yes

14 Did the organization have a written document retention and destruction policy? . 14 Yes

15 Did the process for determining compensation of the following persons include a review and approval byindependent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?

a The organization's CEO, Executive Director, or top management official 15a Yes

b Other officers or key employees of the organization 15b Yes

If "Yes" to line 15a or 15b, describe the process in Schedule 0 (see instructions)

16a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with ataxable entity during the year? . . . . . . . . . . . . . . . . . . . . . 16a No

b If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate itsparticipation in joint venture arrangements under applicable federal tax law, and take steps to safeguard theorganization's exempt status with respect to such arrangements? . . . . . . . . . . 16b

Section C. Disclosure

17 List the States with which a copy of this Form 990 is required to be filed- NY

18 Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3 )s only) available for public inspection Indicate how you made these available Check all that apply

fl Own website F Another's website F Upon request fl Other (explain in Schedule O )

19 Describe in Schedule 0 whether (and if so, how) the organization made its governing documents, conflict ofinterest policy, and financial statements available to the public during the tax year

20 State the name, physical address, and telephone number of the person who possesses the books and records of the organization-Controller's Office 785 Mamaroneck AveWhite Plains, NY 10605 (914) 597-2240

Form 990 (2013)

Form 990 (2013) Page 7

Compensation of Officers , Directors ,Trustees, Key Employees, Highest CompensatedEmployees , and Independent ContractorsCheck if Schedule 0 contains a response or note to any line in this Part VII .F

Section A. Officers, Directors, Trustees, Kev Employees, and Highest Compensated Employees

la Complete this table for all persons required to be listed Report compensation for the calendar year ending with or within the organization'stax year* List all of the organization 's current officers, directors, trustees (whether individuals or organizations), regardless of amount

of compensation Enter-0- in columns (D), (E), and (F) if no compensation was paid

* List all of the organization's current key employees, if any See instructions for definition of "key employee "

* List the organization's five current highest compensated employees (other than an officer, director, trustee or key employee)who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from theorganization and any related organizations

* List all of the organization's former officers, key employees, or highest compensated employees who received more than $100,000of reportable compensation from the organization and any related organizations

* List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of theorganization, more than $10,000 of reportable compensation from the organization and any related organizations

List persons in the following order individual trustees or directors, institutional trustees, officers, key employees, highestcompensated employees, and former such persons

1 Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee

(A) (B) (C) (D) (E) (F)Name and Title Average Position (do not check Reportable Reportable Estimated

hours per more than one box, unless compensation compensation amount ofweek (list person is both an officer from the from related otherany hours and a director/trustee) organization organizations compensationfor related

25 0 = T (W- 2/1099- (W- 2/1099- from the

organizations CL :1 fD ado a MISC) MISC) organizationbelow m (D art, and related

dotted line) S_

Q V organizations

(1) Robert J Baldoni 4 00X X 0 0 0

President 2 00

(2) Rajiv Ratan MD PhD 35 00X X 416,138 0 111,303

Vice President 1 00

(3) John J Ryan 1 00X X 0 451,543 187,192

Secret/Treas 1 00

(4) James Ashe MD 1 00X 0 0 0

Trustee

(5) Marcus D Baker 1 00X 0 0 0

Trustee 1 00

(6) M Flint Beal MD 1 00X 0 0 0

Trustee

(7) Alan Leevey MD PhD 1 00X 0 0 0

Trustee

(8) Marie T Filbin PhD 1 00X 0 0 0

Trustee

(9) David Ginty PhD 1 00X 0 0 0

Trustee

(10) Donald Foley 1 00X 0 0 0

Trustee 1 00

(11) Mary Beth Walsh MD 1 00X 0 482,278 303,873

Trustee 1 00

(12) Dale E Bredsen MD 1 00X 0 0 0

Trustee

(13) Harel Weinstein DSc 1 00X 0 0 0

Trustee

(14) William Cuddy 1 00X 0 0 0

Trustee

(15) Fred Maxfield MD 1 00X 0 0 0

Trustee

(16) Beth Ann Mclaughlin PhD 1 00X 0 0 0

Trustee

(17) Richard P Randall 1 00X 0 0

^

0Trustee I I J-

Form 990 (2013)

Form 990 (2013) Page 8

Section A. Officers, Directors, Trustees , Key Employees, and Highest Compensated Employees (continued)

(A) (B) (C) (D) (E) (F)Name and Title Average Position (do not check Reportable Reportable Estimated

hours per more than one box, unless compensation compensation amount of otherweek (list person is both an officer from the from related compensationany hours and a director/trustee) organization organizations from thefor related 0 - ;rl M

= T (W- 2/1099- (W- 2/1099- organizationorganizations - EL 5 ^] (o MISC) MISC) and related

belowm

Q0

r organizationsdotted line) C:

a,a,

SL T! fD 0

=71 (D _0

J.

4• ^

(18) Michael LShelanski MD PhD 1 00X 0 0 0

Trustee

(19) Jo- Ann Friedman - Rapaport 1 00X 0 0 0

Trustee

(20) Chris Shoup 1 00X 0 0 0

Trustee

(21) Alfonso Carney Jr 1 00X 0 0 0

Trustee 1 00

(22) Shalesh Kaushal MDPhD 1 00X 0 0 0

Trustee

(23) Pamela Rosenthal MDPhD 1 00X 0 0 0

Trustee

(24) Margaret Keller Sperling 1 00X 0 0 0

Trustee

(25) Timothy Vartanian MD PhD 1 00X 0 0 0

Trustee

(26) Eric Shipp 35 00X 137,082 0 42,372

Chief Scientific Officer 1 00

(27) Botir Sagdullaev 35 00X 118,268 0 36,557

Research Scientist

(28) Glen Prusky 35 00X 225,648 0 69,748

Research Scientist

(29) Dylan Edwards 35 00X 141,642 0 43,782

Research Scientist

(30) Mary Donohoe 35 00X 127,180 0 39,312

Research/ Scientist

lb Sub-Total . . . . . . . . . . . . . . . . 0-

c Total from continuation sheets to Part VII, Section A . . . . 0-

d Total ( add lines lb and 1c) . . . . . . . . . . . . 0- 1,165,958 933,821 834,139

Total number of individuals (including but not limited to those listed above) who received more than$100,000 of reportable compensation from the organization-7

No

Did the organization list any former officer, director or trustee, key employee, or highest compensated employee

on line la? If "Yes," completeScheduleJforsuch individual . . . . . . . . . . . . . 3 No

4 For any individual listed on line la, is the sum of reportable compensation and other compensation from theorganization and related organizations greater than $150,0007 If "Yes," complete Schedule -7 for such

individual . . . . . . . . . . . . . . . . . . . . . . . . . . .

Did any person listed on line la receive or accrue compensation from any unrelated organization or individual for

services rendered to the organization? If "Yes," complete Schedule Jfor such person . . . . . . . 5 No

Section B. Independent Contractors

1 Complete this table for your five highest compensated independent contractors that received more than $100,000 ofcompensation from the organization Report compensation for the calendar year ending with or within the organization's tax year

(A) (B) (C)Name and business address Description of services Compensation

2 Total number of independent contractors (including but not limited to those listed above) who received more than$100.000 of compensation from the oraanization -

Form 990 (2013)

Form 990 (2013) Page 9

Statement of RevenueCheck if Schedule 0 contains a response or note to any line in this Part VIII F

(A) (B) (C) (D)Total revenue Related or Unrelated Revenue

exempt business excluded fromfunction revenue tax underrevenue sections

512-514

la Federated campaigns . laZ

r = b Membership dues . . . . lb6- 0

0 E c Fundraising events . . . . 1c

d Related organizations . ld 4,279,772

tJ'E e Government grants (contributions) le 6,097,709

V f All other contributions, gifts, grants, and if 2,397,997^ similar amounts not included above

g Noncash contributions included in linesla-If $

h Total . Add lines la-1f . 12,775,478

Business Code

2a

b

c

d

e

f All other program service revenue

g Total . Add lines 2a-2f . . . . . . . . 0-

3 Investment income (including dividends, interest,and other similar amounts) . . . . . . . 0-

4 Income from investment of tax-exempt bond proceeds , . 0-

5 Royalties . . . . . . . . . . . 0-

(i) Real (ii) Personal

6a Gross rents 96

b Less rentalexpenses

c Rental income 96or (loss)

d Net rental inco me or (loss) 96

(i) Securities (ii) Other

7a Gross amountfrom sales ofassets otherthan inventory

b Less cost orother basis andsales expenses

c Gain or (loss)

d Net gain or (loss) . .

8a Gross income from fundraisingW events (not including

$

of contributions reported on line 1c)See Part IV, line 18

a

s b Less direct expenses . b

c Net income or (loss) from fundraising events . . 0-

9a Gross income from gaming activitiesSee Part IV, line 19 . .

a

b Less direct expenses . b

c Net income or (loss) from gaming acti vities . . .0-

10a Gross sales of inventory, lessreturns and allowances .

a

b Less cost of goods sold . b

c Net income or (loss) from sales of inventory . lim-

Miscellaneous Revenue Business Code

11a Employee Benefit Contribution 900099 97,984 97,984

b Purchase Discounts 900099 17,055 17,055

C

d All other revenue . .

e Total .Add lines 11a-11d . 0-115,039

12 Total revenue . See Instructions12,890,613 115,039 ,

Form 990 (2013)

Form 990 (2013) Page 10

Statement of Functional Expenses

Section 501(c)(3) and 501(c)(4) organizations must complete all columns All other organizations must complete column (A)

Check if Schedule 0 contains a response or note to any line in this Part IX . . . . . . . . . . . . . .

Do not include amounts reported on lines 6b,

7b, 8b, 9b, and 10b of Part VIII .

( A)

Total expenses

(B)Program service

expenses

(C)Management andgeneral expenses

(D)Fundraisingexpenses

1 Grants and other assistance to governments and organizationsin the United States See Part IV, line 21 0

2 Grants and other assistance to individuals in theUnited States See Part IV, line 22 0

3 Grants and other assistance to governments,organizations , and individuals outside the UnitedStates See Part IV, lines 15 and 16 0

4 Benefits paid to or for members 0

5 Compensation of current officers, directors, trustees, and

key employees 555,978 41,400 514,578

6 Compensation not included above, to disqualified persons(as defined under section 4958( f)(1)) and personsdescribed in section 4958( c)(3)(B) . 0

7 Other salaries and wages 4,640,617 3,487,488 1,153,129

8 Pension plan accruals and contributions (include section 401(k)and 403(b) employer contributions ) 421 ,943 286,532 135,411

9 Other employee benefits 817 ,004 551,817 265,187

10 Payroll taxes 367,328 249,444 117,884

11 Fees for services ( non-employees)

a Management . 0

b Legal 574 574

c Accounting . . . . . . . . . . 33,111 33,111

d Lobbying . 0

e Professional fundraising services See Part IV, line 17

f Investment management fees . 0

g Other ( If line 11g amount exceeds 10 % of line 25,column ( A) amount, list line 11g expenses onSchedule O) . 0

12 Advertising and promotion 0

13 Office expenses 1,567,725 1,410,552 157,173

14 Information technology 187,673 187,673

15 Royalties . 0

16 Occupancy . 0

17 Travel . . . . . . . . . . . 134,378 120,353 14,025

18 Payments of travel or entertainment expenses for any federal,state, or local public officials 0

19 Conferences , conventions , and meetings 48,979 48,979

20 Interest 119,343 119,343

21 Payments to affiliates 0

22 Depreciation , depletion, and amortization 1,353,585 1,353,585

23 Insurance 65,687 15,362 50,325

24 Other expenses Itemize expenses not covered above (Listmiscellaneous expenses in line 24e If line 24e amount exceeds 10%of line 25, column ( A) amount, list line 24e expenses on Schedule 0

a Books Magazines 17,851 8,069 9,782

b Professional Fees 1,633,344 1,633,344

c Equipt Rental 985,874 441,384 544,490

d Physician Remuneration Consortiums 1,328,426 1,278,542 49,884

e All other expenses 0

25 Total functional expenses. Add lines 1 through 24e 14,279,420 7,890,943 6,388,477 0

26 Joint costs. Complete this line only if the organizationreported in column ( B) joint costs from a combinededucational campaign and fundraising solicitation Checkhere - fl if following SOP 98-2 (ASC 958-720)

Form 990 (2013)

Form 990 (2013) Page 11

Balance SheetCheck if Schedule 0 contains a response or note to any line in this Part X F

(A) (B)Beginning of year End of year

1 Cash-non-interest-bearing 1,180,354 1 2,180,668

2 Savings and temporary cash investments 2

3 Pledges and grants receivable, net 1,008,228 3 1,425,745

4 Accounts receivable, net 4

5 Loans and other receivables from current and former officers, directors, trustees, keyemployees, and highest compensated employees Complete Part II ofSchedule L . .

5

6 Loans and other receivables from other disqualified persons (as defined under section4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employersand sponsoring organizations of section 501(c)(9) voluntary employees' beneficiaryorganizations (see instructions) Complete Part II of Schedule L

6

7 Notes and loans receivable, net 7

8 Inventories for sale or use 8

9 Prepaid expenses and deferred charges . 189,346 9 223,472

10a Land, buildings, and equipment cost or other basis CompletePart VI of Schedule D 10a 24,595,700

b Less accumulated depreciation . 10b 14,626,977 10,313,229 10c 9,968,723

11 Investments-publicly traded securities . 11

12 Investments-other securities See Part IV, line 11 12

13 Investments-program-related See Part IV, line 11 13

14 Intangible assets . . . . . . . . . . . . . . 14

15 Other assets See Part IV, line 11 839,339 15 32,012

16 Total assets . Add lines 1 through 15 (must equal line 34) . 13,530,496 16 13,830,620

17 Accounts payable and accrued expenses 1,166,462 17 1,522,985

18 Grants payable 18

19 Deferred revenue . . . . . . . . . . . . . . . 1,543,357 19 1,851,692

20 Tax-exempt bond liabilities . . . . . . . . . . . . 20

21 Escrow or custodial account liability Complete Part IV of Schedule D 21

22 Loans and other payables to current and former officers, directors, trustees,key employees, highest compensated employees, and disqualified

persons Complete Part II of Schedule L . 22

23 Secured mortgages and notes payable to unrelated third parties 6,254,294 23 5,906,833

24 Unsecured notes and loans payable to unrelated third parties 24

25 Other liabilities (including federal income tax, payables to related third parties,and other liabilities not included on lines 17-24) Complete Part X of ScheduleD . 25

26 Total liabilities . Add lines 17 through 25 . 8,964,113 26 9,281,510

Organizations that follow SFAS 117 (ASC 958), check here 1- F and complete

lines 27 through 29, and lines 33 and 34.

C5 27 Unrestricted net assets 4,566,383 27 4,549,110

Mca 28 Temporarily restricted net assets 28

r29 Permanently restricted net assets 29

_Organizations that do not follow SFAS 117 (ASC 958), check here 1- fl and

complete lines 30 through 34.

30 Capital stock or trust principal, or current funds 30

31 Paid-in or capital surplus, or land, building or equipment fund 31

4T 32 Retained earnings, endowment, accumulated income, or other funds 32

33 Total net assets or fund balances 4,566,383 33 4,549,110

34 Total liabilities and net assets/fund balances 13,530,496 34 13,830,620

Form 990 (2013)

Form 990 (2013) Page 12

« Reconcilliation of Net AssetsCheck if Schedule 0 contains a response or note to any line in this Part XI . F

1 Total revenue (must equal Part VIII, column (A), line 12) . .

2 Total expenses (must equal Part IX, column (A), line 25) . .

3 Revenue less expenses Subtract line 2 from line 1

4 Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A))

5 Net unrealized gains (losses) on investments

6 Donated services and use of facilities

7 Investment expenses . .

8 Prior period adjustments . .

9 Other changes in net assets or fund balances (explain in Schedule 0)

10 Net assets or fund balances at end of year Combine lines 3 through 9 (must equal Part X, line 33,column (B))

1 12,890,613

2 14,279,420

3 -1,388,807

4 4,566,383

5

6

7

8

9 1,371,534

10 4,549,110

Financial Statements and Reporting

Check if Schedule 0 contains a response or note to any line in this Part XII (-

Yes No

1 Accounting method used to prepare the Form 990 fl Cash 17 Accrual (OtherIf the organization changed its method of accounting from a prior year or checked " Other," explain inSchedule 0

2a Were the organization 's financial statements compiled or reviewed by an independent accountant? 2a

If'Yes,'check a box below to indicate whether the financial statements for the year were compiled or reviewed ona separate basis, consolidated basis, or both

fl Separate basis fl Consolidated basis fl Both consolidated and separate basis

b Were the organization 's financial statements audited by an independent accountant? 2b Yes

If'Yes,'check a box below to indicate whether the financial statements for the year were audited on a separatebasis, consolidated basis, or both

fl Separate basis F Consolidated basis fl Both consolidated and separate basis

c If "Yes," to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of theaudit, review , or compilation of its financial statements and selection of an independent accountant? 2c Yes

If the organization changed either its oversight process or selection process during the tax year, explain inSchedule 0

3a As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the

No

Single Audit Act and 0 MB Circular A-1 33? 3a Yes

b If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the 3b Yesrequired audit or audits, explain why in Schedule 0 and describe any steps taken to undergo such audits

Form 990 (2013)

efile GRAPHIC p rint - DO NOT PROCESS As Filed Data - DLN: 93493252007854

SCHEDULE A Public Charity Status and Public SupportOMB No 1545-0047

(Form 990 or 990EZ) Complete if the organization is a section 501(c)( 3) organization or a section 4947(a)(1)2013nonexempt charitable trust.

Department of the I Oil Attach to Form 990 or Form 990-EZ . Oil See separate instructions.Treasury Oil Information about Schedule A (Form 990 or 990-EZ) and its instructions is atInternal Revenue Service

Name of the organization I Employer identification numberWinifred Masterson Burke Medical Res Ins Inc

Reason for Public Charity Status (All organizations must complete this part.) See instructions.The organi zation is not a private foundation because it is (For lines 1 through 11, check only one box )

1 1 A church, convention of churches, or association of churches described in section 170 ( b)(1)(A)(i).

2 fl A school described in section 170(b)(1)(A)(ii). (Attach Schedule E )

3 1 A hospital or a cooperative hospital service organization described in section 170 ( b)(1)(A)(iii).

4 F A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the

hospital's name, city, and stateWinifred Masterson Burke Rehabilitation Hospital,

White Plains, NY5 1 An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170 ( b)(1)(A)(iv ). (Complete Part II )

6 1 A federal, state, or local government or governmental unit described in section 170 ( b)(1)(A)(v).

7 1 An organization that normally receives a substantial part of its support from a governmental unit or from the general publicdescribed in section 170 ( b)(1)(A)(vi ). (Complete Part II )

8 fl A community trust described in section 170 ( b)(1)(A)(vi ) (Complete Part II )

9 1 An organization that normally receives (1) more than 331/3% of its support from contributions, membership fees, and gross

receipts from activities related to its exempt functions-subject to certain exceptions, and (2) no more than 331/3% of

its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses

acquired by the organization after June 30, 1975 See section 509(a)(2). (Complete Part III )

10 1 An organization organized and operated exclusively to test for public safety See section 509(a)(4).

11 1 An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes ofone or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2) See section 509(a)(3). Checkthe box that describes the type of supporting organization and complete lines Ile through 11 h

a fl Type I b fl Type II c fl Type III - Functionally integrated d fl Type III - Non-functionally integrated

e (- By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified personsother than foundation managers and other than one or more publicly supported organizations described in section 509 ( a)(1 ) orsection 509(a)(2)

f If the organization received a written determination from the IRS that it is a Type I, Type II, orType III supporting organization,check this box F

g Since August 17, 2006, has the organization accepted any gift or contribution from any of thefollowing persons?(i) A person who directly or indirectly controls , either alone or together with persons described in (ii) Yes No

and (iii) below, the governing body of the supported organization? 11g(i)

(ii) A family member of a person described in (i) above? 11g(ii)

(iii) A 35% controlled entity of a person described in (i) or (ii) above? 11g(iii)

Provide the following information about the supported organization(s)

(i) Name of (ii) EIN (iii) Type of (iv) Is the (v) Did you notify (vi) Is the (vii) Amount ofsupported organization organization in the organization organization in monetary

organization (described on col (i) listed in in col (i) of your col (i) organized supportlines 1- 9 above your governing support? in the U S ?or IRC section document?

(seeinstructions))

Yes No Yes No Yes No

Total

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ . Cat No 11285F ScheduleA(Form 990 or 990-EZ)2013

Schedule A (Form 990 or 990-EZ) 2013 Page 2

MU^ Support Schedule for Organizations Described in Sections 170(b )( 1)(A)(iv) and 170 ( b)(1)(A)(vi)(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify underPart III. If the organization fails to qualify under the tests listed below, please complete Part III.)

Section A . Public SupportCalendar year ( or fiscal year beginning (a) 2009 (b) 2010 (c) 2011 (d) 2012 (e) 2013 (f) Total

in) 111111 Gifts, grants, contributions, and

membership fees received (Do notinclude any "unusualgrants ")

2 Tax revenues levied for theorganization's benefit and eitherpaid to or expended on itsbehalf

3 The value of services or facilitiesfurnished by a governmental unit tothe organization without charge

4 Total .Add lines 1 through 3

5 The portion of total contributionsby each person (other than agovernmental unit or publiclysupported organization) included online 1 that exceeds 2% of theamount shown on line 11, column(f)

6 Public support . Subtract line 5 fromline 4

Section B. Total SupportCalendar year (or fiscal year beginning (a) 2009 (b) 2010 (c) 2011 (d) 2012 (e) 2013 (f) Total

in) ►7 Amounts from line 4

8 Gross income from interest,dividends, payments received onsecurities loans, rents, royaltiesand income from similarsources

9 Net income from unrelatedbusiness activities, whether or notthe business is regularly carriedon

10 Other income Do not include gainor loss from the sale of capitalassets (Explain in Part IV )

11 Total support (Add lines 7 through10)

12 Gross receipts from related activities, etc (see instructions) 12

13 First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization, checkthis box and stop here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ^.

Section C. Com p utation of Public Support Percenta g e14 Public support percentage for 2013 (line 6, column (f) divided by line 11, column (f)) 14 0 %

15 Public support percentage for 2012 Schedule A, Part II, line 14 15

16a 331 / 3%support test-2013. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this boxand stop here . The organization qualifies as a publicly supported organization

b 331 / 3%support test-2012 . If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check thisbox and stop here . The organization qualifies as a publicly supported organization

17a 10%-facts-and -circumstances test - 2013. If the organization did not check a box on line 13, 16a, or 16b, and line 14is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here . Explainin Part IV how the organization meets the "facts-and-circumstances" test The organization qualifies as a publicly supportedorganization

b 10%-facts-and-circumstances test -2012 . If the organization did not check a box on line 13, 16a, 16b, or 17a, and line15 is 10% or more, and if the organization meets the "facts- and-circumstances" test, check this box and stop here.Explain in Part IV how the organization meets the "facts-and-circumstances" test The organization qualifies as a publiclysupported organization

18 Private foundation . If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and seeinstructions

Schedule A (Form 990 or 990-EZ) 2013

Schedule A (Form 990 or 990-EZ) 2013 Page 3

IMMITM Support Schedule for Organizations Described in Section 509(a)(2)(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify underPart II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A . Public SupportCalendar year ( or fiscal year beginning (a) 2009 (b) 2010 (c) 2011 (d) 2012 (e) 2013 (f) Total

in) 111111 Gifts, grants, contributions, and

membership fees received (Do notinclude any "unusual grants ")

2 Gross receipts from admissions,merchandise sold or servicesperformed, or facilities furnished inany activity that is related to theorganization's tax-exemptpurpose

3 Gross receipts from activities thatare not an unrelated trade orbusiness under section 513

4 Tax revenues levied for theorganization's benefit and eitherpaid to or expended on itsbehalf

5 The value of services or facilitiesfurnished by a governmental unit tothe organization without charge

6 Total . Add lines 1 through 5

7a Amounts included on lines 1, 2,and 3 received from disqualifiedpersons

b Amounts included on lines 2 and 3received from other thandisqualified persons that exceedthe greater of$5,000 or 1% of theamount on line 13 for the year

c Add lines 7a and 7b

8 Public support (Subtract line 7cfrom line 6 )

Section B. Total SuuuortCalendar year ( or fiscal year beginning (a) 2009 (b) 2010 (c) 2011 (d) 2012 (e) 2013 (f) Total

in) ►9 Amounts from line 6

10a Gross income from interest,dividends, payments received onsecurities loans, rents, royaltiesand income from similarsources

b Unrelated business taxableincome (less section 511 taxes)from businesses acquired afterJune 30, 1975

c Add lines 10a and 10b

11 Net income from unrelatedbusiness activities not includedin line 10b, whether or not thebusiness is regularly carried on

12 Other income Do not includegain or loss from the sale ofcapital assets (Explain in PartIV )

13 Total support . (Add lines 9, 1Oc,11, and 12 )

14 First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,check this box and stop here

Section C. Computation of Public Support Percentage

15 Public support percentage for 2013 (line 8, column (f) divided by line 13, column (f)) 15 0 %

16 Public support percentage from 2012 Schedule A, Part III, line 15 16

Section D . Com p utation of Investment Income Percenta g e17 Investment income percentage for 2013 (line 10c, column (f) divided by line 13, column (f)) 17 0 %

18 Investment income percentage from 2012 Schedule A, Part III, line 17 18

19a 331 / 3%support tests-2013. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is notmore than 33 1/3%, check this box and stop here . The organization qualifies as a publicly supported organization lk'F-

b 331 / 3%support tests-2012 . If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18is not more than 33 1/3%, check this box and stop here . The organization qualifies as a publicly supported organization lk'F-

20 Private foundation . If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions

Schedule A (Form 990 or 990-EZ) 2013

Schedule A (Form 990 or 990-EZ) 2013 Page 4

Supplemental Information . Provide the explanations required by Part II, line 10; Part II, line 17a or17b; and Part III, line 12. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

I Return Reference I Explanation I

Schedule A (Form 990 or 990-EZ) 2013

lefile GRAPHIC print - DO NOT PROCESS As Filed Data - DLN: 93493252007854

SCHEDULE D Supplemental Financial StatementsOMB No 1545-0047

(Form 990)Complete if the organization answered "Yes," to Form 990,0- 2013

Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b

Department of the Treasury 0- Attach to Form 990. 0- See separate instructions . 1- Information about Schedule D (Form 990) •II. -

Internal Revenue Service and its instructions is at www.irs.gov/form990. . -

Name of the organization Employer identification numberWinifred Masterson Burke Medical Res Ins Inc

13-3434924Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts . Complete if theorg anization answered "Yes" to Form 990 , Part IV , line 6.

(a) Donor advised funds (b) Funds and other accounts

1 Total number at end of year

2 Aggregate contributions to (during year)

3 Aggregate grants from (during year)

4 Aggregate value at end of year

5 Did the organization inform all donors and donor advisors in writing that the assets held in donor advisedfunds are the organization's property, subject to the organization's exclusive legal control? F Yes I No

6 Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can beused only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purposeconferring impermissible private benefit? fl Yes fl No

MRSTI-Conservation Easements . Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

1 Purpose(s) of conservation easements held by the organization (check all that apply)

1 Preservation of land for public use (e g , recreation or education) 1 Preservation of an historically important land area

1 Protection of natural habitat 1 Preservation of a certified historic structure

fl Preservation of open space

2 Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservationeasement on the last day of the tax year

a Total number of conservation easements

b Total acreage restricted by conservation easements

c Number of conservation easements on a certified historic structure included in (a)

d Number of conservation easements included in (c) acquired after 8/17/06, and not on ahistoric structure listed in the National Register

Held at the End of the Year

2a

2b

2c

2d

3 N umber of conservation easements modified, transferred, released, extinguished , or terminated by the organization during

the tax year 0-

4 N umber of states where property subject to conservation easement is located 0-

5 Does the organization have a written policy regarding the periodic monitoring , inspection , handling of violations, andenforcement of the conservation easements it holds? fl Yes fl No

6 Staff and volunteer hours devoted to monitoring , inspecting , and enforcing conservation easements during the year

0-

7 Amount of expenses incurred in monitoring , inspecting , and enforcing conservation easements during the year

0- $

8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i)and section 170(h)(4)(B)(ii)? F Yes 1 No

9 In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, andbalance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describesthe organization's accounting for conservation easements

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.Complete if the oraanization answered "Yes" to Form 990. Part IV. line 8.

la If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheetworks of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of publicservice, provide, in Part XIII, the text of the footnote to its financial statements that describes these items

b If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheetworks of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of publicservice, provide the following amounts relating to these items

(i) Revenues included in Form 990, Part VIII, line 1 $

(ii)Assets included in Form 990, Part X $

2 If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide thefollowing amounts required to be reported under SFAS 116 (ASC 958) relating to these items

a Revenues included in Form 990, Part VIII, line 1 $

b Assets included in Form 990, Part X $

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 52283D Schedule D ( Form 990) 2013

Schedule D (Form 990) 2013 Page 2

r:FTnFW Organizations Maintaining Collections of Art, Historical Treasures , or Other Similar Assets (continued)

3 Using the organization's acquisition, accession, and other records, check any of the following that are a significant use of itscollection items (check all that apply)

a F_ Public exhibition d fl Loan or exchange programs

b 1 Scholarly research e (- Other

c F Preservation for future generations

4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose inPart XIII

5 During the year, did the organization solicit or receive donations of art, historical treasures or other similarassets to be sold to raise funds rather than to be maintained as part of the organization's collection? 1 Yes 1 No

Escrow and Custodial Arrangements . Complete if the organization answered "Yes" to Form 990,Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

la Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets notincluded on Form 990, Part X7 1 Yes F No

b If "Yes," explain the arrangement in Part XIII and complete the following table

c Beginning balance 1c

d Additions during the year ld

e Distributions during the year le

f Ending balance if

A mount

2a Did the organization include an amount on Form 990, Part X, line 21? fl Yes fl No

b If "Yes," explain the arrangement in Part XIII Check here if the explanation has been provided in Part XIII . . . . . . . . F

MWAF-Endowment Funds . Com p lete If the org anization answered "Yes" to Form 990, Part IV, line 10.

la Beginning of year balance .

b Contributions

c Net investment earnings, gains, and losses

d Grants or scholarships

e Other expenditures for facilitiesand programs

f Administrative expenses .

g End of year balance

(a)Current year (b)Prior year b (c)Two years back (d)Three years back (e)Four years back

2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as

a Board designated or quasi-endowment 0-

b Permanent endowment 0-

c Temporarily restricted endowment 0-

The percentages in lines 2a, 2b, and 2c should equal 100%

3a Are there endowment funds not in the possession of the organization that are held and administered for theorganization by Yes No

(i) unrelated organizations . . . . . . . . . . . . . . . . . . . . . . . . 3a(i)

(ii) related organizations . . . . . . . . . . . . . . . . . . . . . . 3a(ii)

b If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? . . I 3b

4 Describe in Part XIII the intended uses of the organization's endowment funds

Land , Buildings , and Equipment . Complete if the organization answered 'Yes' to Form 990, Part IV, line1 1 a See Form 990 Part X line 1(l

Description of property (a) Cost or otherbasis ( investment)

( b)Cost or otherbasis ( other)

( c) Accumulateddepreciation

( d) Book value

la Land 150 ,061 12,227

b Buildings 12 ,976,274 5,406,177 7,570,097

c Leasehold improvements . .

d Equipment 11,469,365 9,082,966 2,386,399

e Other

Total. Add lines 1a through 1 e (Column (d) must equal Form 990, Part X, column (B), line 10 (c).) . . 0- 9,968,723

Schedule D (Form 990) 2013

Schedule D (Form 990) 2013 Page 3

Investments-Other Securities . Complete if the organization answered 'Yes' to Form 990, Part IV, line 11b.See Form 990 , Part X line 12.

(a) Description of security or category (b)Book value (c) Method of valuation(including name of security) Cost or end-of-year market value

(1 )Financial derivatives

(2)Closely-held equity interests

(3)Other(A) Financial derivatives and other financial Droducts

(B) Closely-held equity interests

Total . (Column (b) must equa l Form 990, Part X, col (B) line 12 ) 11.

Form QQn Part Y lino 7S

Schedule D (Form 990) 2013

Investments-Program Related . Complete if the organization answered 'Yes' to Form 990, Part IV, line 11c.Caa Form QQ(1 Dart X lino 1 -^

2. Liability for uncertain tax positions In Part XIII, provide the text of the footnote to the organization ' s financial statements thatreports the organization ' s liability for uncertain tax positions under FIN 48 (A SC 740) C heck here if the text of the footnote has beenprovided in Part XIII F

Schedule D (Form 990) 2013 Page 4

Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete ifthe org anization answered 'Yes' to Form 990 , Part IV line 12a.

1 Total revenue, gains, and other support per audited financial statements . 1 12,890,613

2 Amounts included on line 1 but not on Form 990, Part VIII, line 12

a Net unrealized gains on investments . 2a

b Donated services and use of facilities . 2b

c Recoveries of prior year grants 2c

d Other (Describe in Part XIII ) 2d

e Add lines 2a through 2d . . . . . . . . . . . . . . . . . . . . 2e

3 Subtract line 2e from line 1 . . . . . . . . . . . . . . . . . . . . 3 12,890,613

4 Amounts included on Form 990, Part VIII, line 12, but not on line 1

a Investment expenses not included on Form 990, Part VIII, line 7b 4a

b Other (Describe in Part XIII ) . . . . . . . . . . 4b

c Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . 4c

5 Total revenue Add lines 3 and 4c. (This must equal Form 990, Part I, line 12 ) . . . . . 5 12,890,613

« Reconciliation of Expenses per Audited Financial Statements With Expenses per Return . Completeif the org anization answered 'Yes' to Form 990 , Part IV line 12a.

1 Total expenses and losses per audited financial statements 1 14,279,420

2 Amounts included on line 1 but not on Form 990, Part IX, line 25

a Donated services and use of facilities . 2a

b Prior year adjustments 2b

c Other losses . . . . . . . . . . . . . . . 2c

d Other (Describe in Part XIII ) . . . . . . . . . . . 2d

e Add lines 2a through 2d . . . . . . . . . . . . . . . . . . . . . 2e

3 Subtract line 2e from line 1 . . . . . . . . . . . . . . . . . . . . 3 14,279,420

4 Amounts included on Form 990, Part IX, line 25, but not on line 1:

a Investment expenses not included on Form 990, Part VIII, line 7b 4a

b Other (Describe in Part XIII ) . . . . . . . . . . . 4b

c Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . 4c

5 Total expenses Add lines 3 and 4c. (This must equal Form 990, Part I, line 18 ) . . . . . 5 14,279,420

UT1174M Supplemental Information

Provide the descriptions required for Part II, lines 3, 5, and 9, Part III, lines la and 4, Part IV, lines lb and 2b,Part V, line 4, Part X, line 2, Part XI, lines 2d and 4b, and Part XII, lines 2d and 4b Also complete this part to provide any additionalinformation

Return Reference Explanation

Schedule D (Form 990) 2013

Schedule D (Form 990) 2013

Schedule D (Form 990) 2013 Page 5

l efile GRAPHIC p rint - DO NOT PROCESS As Filed Data - DLN: 93493252007854

Schedule J Compensation Information OMB No 1545-0047

(Form 990)For certain Officers, Directors, Trustees, Key Employees, and Highest

2013Compensated Employees1- Complete if the organization answered "Yes" to Form 990, Part IV, line 23.

Department of the Treasury 1- Attach to Form 990. 1- See separate instructions. 'Internal Revenue Service 1- Information about Schedule J (Form 990) and its instructions is at www.irs.gov /form990.

Name of the organization Employer identification numberWinifred Masterson Burke Medical Res Ins Inc

13-3434924

MYRTE Questions Re g arding Com pensation

Yes No

la Check the appropiate box(es ) if the organization provided any of the following to or for a person listed in Form990, Part VII , Section A, line la Complete Part III to provide any relevant information regarding these items

1 First-class or charter travel 1 Housing allowance or residence for personal use

1 Travel for companions 1 Payments for business use of personal residence

1 Tax idemnification and gross - up payments 1 Health or social club dues or initiation fees

1 Discretionary spending account 1 Personal services (e g , maid, chauffeur, chef)

b If any of the boxes in line la are checked , did the organization follow a written policy regarding payment orreimbursement or provision of all of the expenses described above? If "No ," complete Part III to explain lb

2 Did the organization require substantiation prior to reimbursing or allowing expenses incurred by alldirectors , trustees , officers, including the CEO/Executive Director, regarding the items checked in line la? 2

3 Indicate which , if any, of the following the filing organization used to establish the compensation of theorganization 's CEO/Executive Director Check all that apply Do not check any boxes for methodsused by a related organization to establish compensation of the CEO /Executive Director, but explain in Part III

F Compensation committee 1 Written employment contract

1 Independent compensation consultant F Compensation survey or study

F Form 990 of other organizations F Approval by the board or compensation committee

4 During the year, did any person listed in Form 990, Part VII, Section A, line la with respect to the filing organizationor a related organization

a Receive a severance payment or change-of-control payment? 4a No

b Participate in, or receive payment from, a supplemental nonqualified retirement plan? 4b No

c Participate in, or receive payment from, an equity-based compensation arrangement? 4c No

If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III

Only 501 ( c)(3) and 501 ( c)(4) organizations only must complete lines 5-9.

5 For persons listed in Form 990, Part VII, Section A, line la, did the organization pay or accrue anycompensation contingent on the revenues of

a The organization? 5a No

b Any related organization? 5b No

If "Yes," to line 5a or 5b, describe in Part III

6 For persons listed in Form 990, Part VII, Section A, line la, did the organization pay or accrue anycompensation contingent on the net earnings of

a The organization? 6a No

b Any related organization? 6b No

If "Yes," to line 6a or 6b, describe in Part III

7 For persons listed in Form 990, Part VII, Section A, line la, did the organization provide any non-fixedpayments not described in lines 5 and 6? If "Yes," describe in Part III 7 No

8 Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that wassubject to the initial contract exception described in Regulations section 53 4958-4(a)(3)? If "Yes," describein Part III 8 No

9 If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulationssection 53 4958-6(c)? 9

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 50053T Schedule 3 ( Form 990) 2013

Schedule J (Form 990) 2013 Page 2

Officers , Directors , Trustees , Key Employees, and Highest Compensated Employees . Use duplicate copies if additional space is needed.For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in theinstructions, on row (ii) Do not list any individuals that are not listed on Form 990, Part VIINote . The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line la, applicable column (D) and (E) amounts for that individual

(A) Name and Title (B ) Breakdown of W-2 and/or 1099-MISC compensation ( C) Retirement and (D) Nontaxable ( E) Total of columns (F) Compensation

(i) Base (ii) Bonus & (iii) Other other deferred benefits ( B)(i)-(D) reported as deferred

compensationincentive reportable compensation in prior Form 990

compensation compensation

(1)Rajiv Ratan MD PhD (i) 416,138 111,303 527,441Vice President (ii)

(2)John J Ryan (i)Secret/Treas (ii) 451,543 21,539 165,653 638,735

(3)Mary Beth Walsh MD (i)Trustee (ii) 482,278 144,270 159,603 786,151

(4)Eric Shipp Chief (i) 137,082 42,372 179,454Scientific Officer (ii)

(5)Botir Sagdullaev (i) 118,268 36,557 154,825Research Scientist (ii)

(6)Glen Prusky 0) 225,648 69,748 295,396Research Scientist (ii)

(7)Dylan Edwards (i) 141,642 43,782 185,424Research Scientist (ii)

(8)Mary Donohoe 0) 127,180 39,312 166,492Research / Scientist (ii)

Schedule 3 (Form 990) 2013

Schedule J (Form 990) 2013 Page 3

Supplemental InformationProvide the information, explanation, or descriptions required for Part I, lines la, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part IIAlso complete this part for any additional information

Return Reference I Explanation

Schedule 3 (Form 990) 2013

efile GRAPHIC p rint - DO NOT PROCESS As Filed Data - DLN: 93493252007854

SCHEDULE 0OMB No 1545 0047

(Form 990 or 990-EZ) Supplemental Information to Form 990 or 990-EZ2013

Department of the Treasury Complete to provide information for responses to specific questions onForm 990 or to provide any additional information . Open

Internal Revenue Service1- Attach to Form 990 or 990-EZ. Inspection

1- Information about Schedule 0 (Form 990 or 990-EZ) and its instructions is atwww.irs.gov/form990.

Name of the organization Employer identification numberWinifred Masterson Burke Medical Res Ins Inc

13-3434924

990 Schedule 0, Supplemental Information

Return ExplanationReference

Form 990, MEDICAL RESEARCH INVOLVING NEUROLOGICAL RELATED DISEASES, SUCH AS DEMENTIA, ALZHEIMERS ANDPart I, Line 1 PARKINSONS THE BURKE MEDICAL RESEARCH INSTITUTE SEEKS TO HARNESS THE BEST IN CONTEMPORARY

NEUROSCIENCE TO ADVANCE INTERVENTIONS TO IMPROVE BRAIN REPAIR AND RECOVERY OF FUNCTION IN ALLNEUROLOGICAL DISEASES THIS ENDEAVOR IS ACTIVELY ADVANCED BY FREQUENT AND LIVELY INTERCHANGE BETWEENSCIENTISTS WORKING ON NOVEL PHARMACOLOGICAL, BIOLOGICAL AND ROBOTIC APPROACHES TO REPAIR THEDAMAGED BRAIN THE BURKE MEDICAL RESEARCH INSTITUTE AND THE BURKE REHABILITATION HOSPITAL ARE EXPERTS INTHE REHABILITATION OF NEUROLOGICAL DISEASES, WHO ARE COMMITTED TO HELP TRANSLATE THESE APPROACHES TOTHE BEDSIDE A NUMBER OF IMPORTANT CLINICAL TRIALS HAVE BEEN COMPLETED AND ARE ONGOING ON THE WARDS OFTHE BURKE REHABILITATION HOSPITAL HOWEVER, WE ARE FAR FROM REACHING OUR CLINICAL GOALS AND POTENTIAL,THE LACK OF BRAIN REPAIR AND CONSEQUENT DISABILITY REMAINS A LARGE AND ALMOST SILENT EPIDEMIC

Form 990, CONTRIBUTIONS 5,245, CHANGE IN FAIR VALUE OF INTEREST RATE CAP 15,340, NET ASSETS RELEASED FROMPart XI, Line 9 RESTRICTIONS 550,989, TRANSFERS TO AFFILIATES 799,960

Form 990, ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES OF THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITALPart VI, AND SUBSIDIARIES ARE REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTEREST QUESTIONNAIRE COMPLETEDSection A, QUESTIONNAIRES ARE REVIEWED BY THE CHAIRMAN OF THE EXECUTIVE COMMITTEE AND ANY CONCERNS PRESENTED BYLine 12C THE RESPONSES TO THE QUESTIONNAIRE ARE DISCLOSED TO THE FULL COMMITTEE WITH THE INTERESTED PARTY

RECUSED FROM DISCUSSING THE MATTER

Form 990, JOHN RYAN AND MARY BETH WALSH PROVIDE SERVICES TO A RELATED PARTY, THE WINIFRED MASTERSON BURKEPart VII, Line REHABILITATION HOSPITAL, IN THEIR CAPACITY BOTH INDIVIDUALS WORK APPROXIMATELY 35 HOURS PER WEEKB

Form 990, COMPENSATION NARRATIVETHE COMPENSATION COMMITTEE IS APPOINTED, ESTABLISHED AND MAINTAINED BY THEPart VI, EXECUTIVE COMMITTEE TO OVERSEE POLICIES AND MAKE RECOMMENDATIONS WITH RESPECT TO EXECUTIVESection B, COMPENSATION MEMBERS ARE MADE UP ENTIRELY OF INDEPENDENT DIRECTORS COMMITTEE MEMBERS USE SALARYLine 15 SURVEYS FROM INDEPENDENT ORGANIZATIONS SUCH AS HEALTHCARE FINANCIAL MANAGEMENT ASSOC, HFMA

HEALTHCARE ASSOCIATION OF NEW YORK,HANYS, IN ADDITION TO IRS FORM 990 OF OTHER COMPARABLE INSTITUTIONS

Form 990, THE INSTITUTE MAKES ITS AUDITED FINANCIAL STATEMENTS, GOVERNING DOCUMENTS AND CONFLICT OF INTERESTPart VI, Line POLICY AVAILABLE TO THE PUBLIC VIA WWW BURKEORG THE INSTITUTES 990 IS POSTED AT WWW GUIDESTAR ORG19 AND UPON REQUEST

Form 990, AS PART OF AN ACTIVE AND ENGAGING BOARD,THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT AREPart XI, PROVIDED A COPY OF IRS FORM 990 IN EITHER ELECTRONIC OR PAPER FORMAT TO REVIEW ALL INDIVIDUALS ARE GIVENSection A, ONE WEEK TO PROVIDE COMMENTS ON FORM 990 IF CHANGES ARE REQUIRED, THEY ARE IMPLEMENTED INTO FORM 990Line 11 ONCE ALL COMMENTS ARE INCORPORATED, THE ACCOUNTING DEPARTMENT ELECTRONICALLY FILES THE FORM 990 WITH

THE APPROPRIATE FEDERAL AND STATE AGENCIES GRANT THORNTON, LLP PROVIDES A HIGH LEVEL REVIEW OF FORM990 AS PART OF AN AGREED UPON PROCEDURE

l efile GRAPHIC p rint - DO NOT PROCESS

SCHEDULE R(Form 990)

Department of the Treasury

Internal Revenue Service

As Filed Data -

Related Organizations and Unrelated Partnerships

1- Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37.1- Attach to Form 990. 1- See separate instructions.

1- Information about Schedule R (Form 990) and its instructions is at www.irs.gov/form990 .

DLN:93493252007854

OMB No 1545-0047

2013

Name of the organization Employer identification numberWinifred Masterson Burke Medical Res Ins Inc

13-3434924

Identification of Disregarded Entities Complete if the organization answered "Yes" on Form 990, Part IV, line 33.

(a)Name, address, and EIN (if applicable) of disregarded entity

(b)Primary activity

(c)Legal domicile (stateor foreign country)

(d)Total income

(e)End-of-year assets

(f)Direct controlling

entity

Identification of Related Tax-Exempt Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had oneor more related tax-exempt organizations during the tax year.

(a)Name, address, and EIN of related organization

( b)Primary activity

(c)Legal domicile (stateor foreign country)

(d)Exempt Code section

(e)Public charity status

(if section 501(c)(3))

(f)Direct controlling

entity

(g)Section 512(b)(13) controlled

entity?

Yes No

(1) W M Burke Rehabilitation Hosp

785 Mamaroneck Ave

White Plains, NY 1060513-1739937

Hospital NY 501c3 3 NOT APPLICABLE No

(2) WM Burke Foundation

785 Mamaroneck Ave

White Plains, NY 1060513-3434928

Fundraising NY 501 c3 11 NOT APPLICABLE No

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 50135Y Schedule R (Form 990) 2013

Schedule R (Form 990) 2013 Page 2

Identification of Related Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 34because it had one or more related organizations treated as a partnership during the tax year.

(a)Name, address, and EIN of

related organization

(b)Primary activity

(c)Legal

domicile(state orforeigncountry)

(d)Direct

controllingentity

(e)Predominant

income(related,unrelated,

excluded fromtax under

sections 512-514)

(f)Share of

total income

(g)Share of

end-of-yearassets

(h)Disproprtionateallocations?

(i)Code V-UBI

amount in box20 of

Schedule K-1(Form 1065)

U)General ormanagingpartner?

(k)Percentageownership

Yes No Yes No

Identification of Related Organizations Taxable as a Corporation or Trust Complete if the organization answered "Yes" on Form 990, Part IV,line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.

(a)Name, address, and EIN of

related organization

(b)Primary activity

(c)Legal

domicile(state or foreign

country)

(d)Direct controlling

entity

(e)Type of entity

(C corp, Scorp,

or trust)

(f)Share of total

income

(g)Share of end-

of-yearassets

(h)Percentageownership

(i)Section 512

(b)(13)controlledentity?

Yes No

Schedule R (Form 990) 2013

Schedule R (Form 990) 2013

ff^ Transactions With Related Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36.

Note . Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule

1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?

a Receipt of (i) interest (ii) annuities (iii) royalties or (iv) rent from a controlled entity

b Gift, grant, or capital contribution to related organization(s)

c Gift, grant, or capital contribution from related organization(s)

d Loans or loan guarantees to or for related organization(s)

e Loans or loan guarantees by related organization(s)

f Dividends from related organization(s)

g Sale of assets to related organization(s)

h Purchase of assets from related organization(s)

i Exchange of assets with related organization(s)

j Lease of facilities, equipment, or other assets to related organization(s)

k Lease of facilities, equipment, or other assets from related organization(s)

I Performance of services or membership or fundraising solicitations for related organization(s)

m Performance of services or membership or fundraising solicitations by related organization(s)

n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s)

o Sharing of paid employees with related organization(s)

p Reimbursement paid to related organization(s) for expenses

q Reimbursement paid by related organization(s) for expenses

r Other transfer of cash or property to related organization(s)

s Other transfer of cash or property from related organization(s)

Page 3

YesFNo

No

No

Yes

No

No

if No

lg No

lh No

li No

li No

lk No-

ll No

lm No

In Yes

to Yes

I Ilp Yes

lq No

lr No

is Yes

2 If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds

(a)Name of related organization

(b)Transactiontype (a-s)

(c)Amount involved

(d)Method of determining amount involved

Schedule R (Form 990) 2013

Schedule R (Form 990) 2013 Page 4

Unrelated Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 37.Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or grossrevenue) that was not a related organization See instructions regarding exclusion for certain investment partnerships

(a)Name, address, and EIN of entity

(b)Primary activity

(c)Legal

domicile(state orforeigncountry)

(d)Predominant

income(related,unrelated,

excluded fromtax under

sections 512-

(e)Are all partners

section501(c)(3)

organizations?

(f)Share of

totalincome

(g)Share of

end-of-yearassets

(h)Disproprtionateallocations?

(i)Code V7UBIamount inbox 20

of ScheduleK-1

(Form 1065)

U)General ormanagingpart ner?

(k)Percentageownership

514)Yes No Yes No Yes No

Schedule R (Form 990) 2013

Schedule R (Form 990) 2013 Page 5

Supplemental Information

Provide additional information for responses to auestions on Schedule R (see instructions

Return Reference Explanation

Schedule R (Form 990) 201

Consolidated Financial Statements,Supplementary Information, and

Report of Independent Certified Public Accountants

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIES

December 31, 2013 and 2012

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIES

TABLE OF CONTENTS

Page

Report of Independent Certified Public Accountants 1 -2

Consolidated Financial Statements

Consolidated Statements of Financial Position 3

Consolidated Statements of Operations 4

Consolidated Statements of Changes in Net Assets 5

Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements 7- 26

Supplementary Information

Net Patient Service Revenue 28

Other Revenue and Net Assets Released From Restrictions - Operations 29

Changes in Temporarily Restricted Net Assets - Specific Purpose Fund 30

Expenses 31 - 33

Refundable Advances and Grant Revenue 34 - 37

Consolidating

Statements of Financial Position 38 - 41

Statements of Operations 42 - 43

GrantThornton

AiL-' • Tax • bdvmionj

Grant Thornton LLP666 Third Avenue, 13th FloorNew York, NY 10017-4011

T 212 599 0100F 212 370 4520www GrantThornton corn

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

Board of DirectorsThe Winifred Masterson Burke Rehabilitation Hospital and Subsidiaries

We have audited the accompanying consolidated financial statements of The Winifred Masterson BurkeRehabilitation Hospital and Subsidiaries (the "Organization"), which comprise the consolidated statements offinancial position as of December 31, 2013 and 2012, and the related consolidated statements of operations, changesin net assets, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

Management ' s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidatedfinancial statements that are free from material misstatement, whether due to fraud or error.

Auditor' s responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. Weconducted our audits in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether theconsolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theconsolidated financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the Organization'spreparation and fair presentation of the consolidated financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theOrganization's internal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the consolidated financial statements.

Grant Thornton LLP

US member firm of Grant Thornton International Ltd

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,

the financial position of The Winifred Masterson Burke Rehabilitation Hospital and Subsidiaries as of

December 31, 2013 and 2012, and the results of its operations and its cash flows for the years then ended in

accordance with accounting principles generally accepted in the United States of America.

Supplementary Information

The accompanying information listed on the table of contents and presented on pages 28 through 43 ispresented for purposes of additional analysis and is not a required part of the consolidated financialstatements. Such supplementary information is the responsibility of management and was derived from andrelates directly to the underlying accounting and other records used to prepare the consolidated financialstatements. The information has been subjected to the auditing procedures applied in the audits of theconsolidated financial statements and certain additional procedures. These additional procedures includedcomparing and reconciling the information directly to the underlying accounting and other records used toprepare the consolidated financial statements or to the consolidated financial statements themselves, andother additional procedures in accordance with auditing standards generally accepted in the United States ofAmerica. In our opinion, the supplementary information is fairly stated, in all material respects, in relationto the consolidated financial statements as a whole.

GSVV,t `kn +- 'apt., L L. P

New York, New York

May 27, 2014

-2-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESConsolidated Statements of Financial PositionAs of December 31, 2013 and 2012

ASSETS 2013 2012

CURRENT ASSETS

Cash and cash equivalents S 17,528,815 S 22,716,109

Shoit-teim investments 760,261 5,011,105

Assets whose use is l imited iequued foi cuiient liabilities 764,775 663,938

Accounts receivable foi services to patients - less allowance for uncollectible

accounts of $1,163,000 in 2013 and $1,339,000 in 2012 7,725,841 8,019,667

Estimated amounts due fiom thud party payoff s-net 2,746,835 -

Piepaid expenses 1,627,245 1,402,436

Inventory of supplies 509,062 474,384

Othei receivables 2,823,747 2,632,424

Total cuiient assets 34,486,581 40,920,063

Assets whose use is limited

Foundation funds 97,005,718 83,556,588

Trusteed funds 25,411,971 21,283,333

Self-insurance trust 2,544,780 2,584,062

Restiicted use cash 217,775 199,938

Depieciation fund 31,776 31,776

Donoi -iestiicted long-teim investments 2,986,897 2,577,276

128,198,917 110,232,973

Less assets whose use is limited iequued foi current liabilities (764,775 ) (663,938 )

127,434,142 109,569,035

Deferred financings costs, net 95,514 101,105

Inteiest rate cap 39,155 23,815

Piopeity, plant and equipment, net 33,326,056 34,401,796

Total assets 5 195,381,448 5 185,015,814

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts payable $ 3,494,949 $ 3,487,979

Acciued expenses 3,343,191 2,764,115

Cuiient poi tion of long-team debt 583,382 569,868

Estimated self-insuiance liabilities 547,000 464,000

Estimated amounts due to thud-pasty payoffs -net - 2,815,850

Refundable advances 1,851,692 1,543,357

Acciued ietuement benefits 137,523 127,730

Total cuiient liabilities 9,957,737 11,772,899

Long-tei m debt, net of cui i ent poi tion 6,429,717 7,013,100

Estimated self-insurance liabilities, net of cuiient portion 2,569,456 2,403,919

Acciued ietuement benefits 30,494,278 47,766,893

Total liabilities 49,451,188 68,956,811

NET ASSETS

Uniestiicted 142,492,002 113,238,248

Tempoiaiily iesti icted 2,650,673 2,033,170

Peimanently iestiicted 787,585 787,585

Total net assets 145,930,260 116,059,003

Total liabilities and net assets $ 195,381,448 $ 185,015,814

The acconlpan17ng notes are an integral part of these consolidated financial statements

-3-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESConsolidated Statements of OperationsFor the years ended December 31, 2013 and 2012

2013

UNRESTRICTED NET ASSETS

Revenues

Net patient service revenue

Grant revenue

Other revenue

Medicare technology stimulus revenue

Net assets released from restrictions - operations

Total revenues

Expenses

Salaries and wages

Supplies and expenses

Employee benefits

Depreciation and amortization

Provision for bad debts

Interest

Total expenses

Loss from operations

NONOPERATING GAINS AND (LOSSES), NET

Contributions

Change in fair value of interest rate cap

Unrestricted income on investments

Realized gains on investments - net

Change in unrealized gains and losses on trading securities

Nonoperating income net

Excess of revenue and gains over expenses and losses

OTHER CHANGES IN UNRESTRICTED NET ASSETS

Net assets released from restrictions - capital acquisition

Other accrued retirement benefits adjustment

Increase in unrestricted net assets

$ 63,332,678

8,495,706

5,518,598

1,723,232Th7111

2012

$ 64,289,031

7,543,716

5,652,405

1 i ) 6151

79,332,525 77, 654,805

45,923,663

19,898,545

16,547,397

5,288,659

268,465

192,854

44,742,726

17,199,511

18,411,975

5,233,229

221,967

215,701

RR I IQ 5Rl R6 (175 1(19

(8,787,058 ) (8 ,370,304 )

838,170 564,260

15,340 (62,839)

2,469,820 2,178,349

5,829,368 6,535,249

10,731,259 2,649,809

19 RRI 957 1 1 R64 R7R

11,096,899 3,494,524

700,124 394,564

1745(,711 7W117S

$ 29,253,754 $ 6,550,466

The acconlpan17ng notes are an integral part of these consolidated financial statements

-4-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESConsolidated Statements of Changes in Net AssetsFor the years ended December 31, 2013 and 2012

2013 2012

UNRESTRICTED NET ASSETS

Excess of revenue and gains over expenses and losses

OTHER CHANGES IN UNRESTRICTED NET ASSETS

Net assets released from restrictions - capital acquisitions

Other accrued retirement benefits adjustment

Increase in unrestricted net assets

TEMPORARILY RESTRICTED NET ASSETS

Restricted grants

Contributions

Investment return

Net assets released from restrictions - operations

Net assets released from restrictions - capital acquisitions

Increase in temporarily restricted net assets

Increase in net assets

Net assets, beginning of year

Net assets, end of year

$ 11,096,899 $ 3,494,524

700,124 394,564

17,456,731 2,661,378

29,253,754 6,550,466

550,989 221,517

588,057 286,931

440,892 254,998

(262,311) (169,653)

(700,124 ) (394,564 )

617,503 199,229

29,871,257 6,749,695

116,059,003 109,309,308

$ 145,930,260 $ 116,059,003

The acconlpan17ng notes are an integral part of these consolida ted financial statements

-5-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESConsolidated Statements of Cash FlowsFor the years ended December 31, 2013 and 2012

2013 2012

CASH FLOWS FROM OPERATING ACTIVITIES

Increase in net assets $ 29,871,257 $ 6,749,695

Adjustments to reconcile increase in net assets to net cash

(used in ) provided by operating activities

Depreciation and amortization 5,288,659 5,233,229

Provision for bad debts 268,465 221,967

Change in fair value of interest rate cap (15 ,340) 62,838

Realized gains on investments - net (5,829 ,368) (6,535,249)

Change in unrealized gains and losses on investment securities (10,731,259) (2,649,809)

Restricted contributions and investment return (1,028,949) (541,929)

Other accrued retirement benefits adjustment (17,456,731) (2,661,378)

Changes in assets and liabilities

Accounts receivable for services to patients 25,361 205,083

Prepaid expenses and other assets (450,810) (228,306)

Accounts payable 6,970 1,154,403

Accrued expenses and other current liabilities 887,411 665,232

Self-insurance liabilities 248,537 (33,517)

Estimated third-party payor settlements, net (5,562,685) 840,726

Accrued retirement benefits 193,909 235,138

Net cash ( used in ) provided by operating activities before

trading securities (4,284,573) 2,718,123

Change in investments - trading securities 2,845,527 12,030,074

Net cash ( used in ) provided by operating activities (1,439,046 ) 14,748,197

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, plant, and equipment , net (4,207,328 ) (4,342,192 )

Net cash used in investing activities (4,207,328 ) (4,342,192 )

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of long -terns debt (569,869) (557,128)

Restricted contributions and investment return 1 ,028,949 541,929

Net cash provided by ( used in ) financing activities 459,080 (15,199 )

Net (decrease ) increase in cash and cash equivalents (5,187,294) 10,390,806

Cash and cash equivalents - beginning of year 22,716,109 12,325,303

Cash and cash equivalents - end of year $ 17,528,815 $ 22,716,109

Supplemental disclosures of cash flow information

Interest paid $ 192,854 $ 215,701

The acconlpan17ng notes are an integral part of these consolidated financial statements

-6-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated Financial StatementsDecember 31, 2013 and 2012

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

The Winifred Masterson Burke Rehabilitation Hospital (the "Hospital") is located in White Plains, NewYork, and is a not-for-profit rehabilitation hospital. The Organization provides inpatient and outpatientservices.

The Hospital is the sole corporate member of The Winifred Masterson Burke Foundation, Inc.(the "Foundation") and The Winifred Masterson Burke Medical Research Institute, Inc. (the "Institute")(collectively, the "Organization").

The Foundation is a not-for-profit organization formed to hold and manage cash and investmentstransferred to it by the Hospital. The Institute is a not-for-profit organization that performs medicalresearch activities.

The Hospital, Foundation and Institute are recognized by the Internal Revenue Service as exempt from

income taxes under Section 501(c)(3) of the Internal Revenue Code ("IRC").

Basis of Accounting/Principles of Consolidation

The consolidated financial statements have been prepared on the accrual basis of accounting. Allintercompany transactions and balances have been eliminated in consolidation.

Statements of Operations

The Organization's operating income includes all unrestricted revenues and expenses. Non-operating gains

and losses include contributions, the change in fair value of the Organizations interest rate cap, unrestricted

income on investments, realized gains and losses, the change in unrealized gains and losses on trading

securities, which includes income related to investments in limited partnerships measured using a net asset

value ("NAV"). The consolidated statements of operations also include the caption "excess of revenue and

gains over expenses and losses," which is the performance indicator. Other changes in unrestricted net

assets which are excluded from the performance indicator, consistent with industry practice, include

contributions of long-lived assets (including assets acquired using contributions which by donor restriction

were to be used for the purposes of acquiring such assets), and other accrued retirement benefits adjustment.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally

accepted in the United States of America requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the

date of the consolidated financial statements and the reported amounts of revenues and expenses during the

reporting period. Net patient service revenue, allowance for uncollectible patient accounts receivable,

amounts due to/from third-party payors, investments without readily determinable fair values, interest rate

cap, estimated self-insurance liabilities, and accrued retirement benefit liabilities represent significant

accounting estimates reflected in the consolidated financial statements. Actual results could differ from

those estimates. The Organization's net patient service revenue for the years ended December 31, 2013 and

2012, increased by $186,000 and decreased $201,000, respectively, as a result of third-party payor

settlements recognized from prior years.

-7-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Cash and Cash Equivalents

Cash in banks and all highly liquid investments with original maturities of three months or less at the dateof purchase are considered cash and cash equivalents, except for amounts included in assets whose use islimited. The carrying amount approximates fair value. The Organization's cash and cash equivalents areheld in accounts whose balances substantially exceed the amount of related federal insurance.

Short-term Investments

Investments with original maturities of three months or greater at the date of purchase are consideredshort-term investments, except for amounts included in assets whose use is limited. The carrying amountapproximates fair value.

Assets Whose Use is Limited

Assets whose use is limited include trusteed funds for which the Board of Directors of the Organization isempowered to use for patient care and other related purposes, within certain guidelines. Also included areFoundation investments, donor-restricted long-term investments, self-insurance trust investments, assetswhose use is limited under an indenture agreement (foundation fund), a restricted cash fund and amountsset aside for plant replacement purposes (depreciation fund). Assets whose use is limited classified ascurrent are for the current portion of estimated self-insurance liabilities and restricted cash.

Investments - Classified as Assets Whose Use is Limited

Investments with readily determinable fair values are stated at fair value based upon quoted market prices.

The Organization invests in a variety of alternative investments carried at their net asset value per share as a

practical expedient, as provided by the investment managers. Alternative investments are primarily in

private equity funds and privately traded mutual funds, in which the underlying investments are in

marketable securities and commodities. Because alternative investments are not readily marketable, their

estimated value is subject to uncertainty and therefore may differ from the value that would have been used

had a ready market for such investments existed. These instruments may contain elements of both credit

risk and market risk. Such risks included, but are not limited to: limited liquidity, absence oversight,

dependence on key individuals, emphasis on speculative investments, and nondisclosure of portfolio

composition.

Unrestricted investment income includes dividend and interest income, realized gains and losses andunrealized gains and losses on its trading securities and is included in non-operating gains and losses, net.

The Organization also invests in various limited partnerships. These investments utilize a "fund-of-funds"approach resulting in diversified multi-strategy, multimanager investments. The partnerships invest capitalin a diversified group of investment entities, primarily in limited partnership interests issued bynontraditional firms or "hedge funds," which engage in a variety of investment strategies managed by

money managers. These investments are measured using a net asset value ("NAV") per share, or its

equivalent. Management's estimates are based on information provided by the fund managers or the

general partners.

-8-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Inventory of Supplies

Inventory of supplies is valued at the lower of cost (average-costing method approximates FIFO) or market.

Deferred Financing Costs

Deferred financing costs represent costs associated with the existing debt, and are being amortized over theterm of the related debt.

Interest Rate Cap

The Organization recognizes all derivative financial instruments (interest rate cap) in the consolidatedfinancial statements at fair value. Management has determined that the Organization's interest rate capagreement does not qualify as a hedge for financial reporting purposes. Consequently, the change in thefair value of the Organization's interest rate cap agreement is included as a component of excess of revenueand gains over expenses and losses in the consolidated statement of operations.

The interest rate cap agreement is used by the Organization to manage exposure to an increase in interest

rates. Derivative financial instruments involve, to a varying degree, elements of market and credit risk.

The market risk associated with this instrument resulting from interest increases is expected to offset the

market risk of the liability being hedged.

Property , Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Cost fordonated assets is the fair value at the date of the gift. Equipment under lease is depreciated in accordancewith the Organization's standard depreciation policy or term of the lease, whichever is shorter.Depreciation and amortization are provided for using the straight-line method, using the followingestimated useful lives established by management:

Land improvements

Buildings

Fixed equipment

Major movable equipment

5 - 25 years

15 - 40 years

5 - 20 years

2 - 20 years

Gifts of land, buildings, and equipment are reported as unrestricted support unless explicit donorstipulations specify how the donated assets must be used. Gifts of long-lived assets with explicitrestrictions that specify how the assets are to be used and gifts of cash or other assets that must be used toacquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about howlong those long-lived assets must be maintained, the Organization reports expirations of donor restrictionswhen the donated or acquired long-lived assets are placed in service.

The Organization, using its best estimates based on reasonable and supportable assumptions andprojections, reviews for impairment of long-lived assets to be held and used whenever events or changes incircumstances indicate that the carrying amount of its assets might not be recoverable.

-9-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Estimated Self-Insurance Liabilities

The provision for estimated self-insurance liabilities includes estimates of the ultimate costs for bothreported claims and claims incurred but not reported.

Unrestricted , Temporarily Restricted and Permanently Restricted Net Assets

Unrestricted net assets are not subject to donor-imposed stipulations and, therefore, may be expended for

any purpose in performing the primary objectives of the Organization. Temporarily restricted net assets are

those whose use has been limited by donors to a specific time period or purpose. Temporarily restricted net

assets are available for education, purchase of equipment, research, financial assistance and other items.

Permanently restricted net assets have been restricted by donors to be maintained by the Organization in

perpetuity or used at a Board appropriated spending rate for an agreed upon purpose, as specified by the

donor. Investment earnings on such are recognized as temporarily restricted revenue until such earnings are

appropriated for expenditure in accordance with the Organizations policies and procedures.

Net Patient Service Revenue

Net patient service revenue is reported at the estimated net realizable amounts from patients, third-partypayors, and others for services rendered, including estimated retroactive adjustments under reimbursementagreements with third-party payors. Retroactive adjustments are accrued on an estimated basis in the periodthe related services are rendered and adjusted in future periods as additional information becomes availableor final settlements are determined.

Medicare Technology Stimulus Revenue

The American Recovery and Reinvestment Act of 2009 provides for Medicare incentive payments for

eligible hospitals and professionals that implement and achieve meaningful use of certified electronic health

record ("EHR") technology. For these EHR incentive payments, the Organization utilizes a grant

accounting model to recognize these revenues. Under this accounting policy, EHR incentive payments

were recognized as revenues when attestation that the EHR meaningful use criteria for the required period

of time was demonstrated. Accordingly, the Organization recognized $1,723,232 of EHR revenues in the

accompanying consolidated statement of operations for the year ended December 31, 2013. The

Organization's attestation of compliance with the meaningful use criteria is subject to audit by the

government or its designee. Additionally, Medicare EHR incentive payments received are subject to

retrospective adjustment upon final settlement of the applicable cost report from which payments were

calculated.

Charity Care and Community Benefit

The Organization provides charity care to patients who meet certain financial criteria under the

Organizations charity care policy and criteria established by the State of New York. The Organization

provides care to patients who meet the criteria without charge or at amounts less than established rates.

Because the Organization does not pursue collection of amounts determined to qualify as charity care, they

are not reported as revenue. Charity care is estimated based on average cost per day. The estimated costs

incurred to provide charity care under the Organization's policy during the years ended December 31, 2013

and 2012, was approximately $405,349 and $301,300, respectively.

-10-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

As a community-based service organization, certain programs are provided, such as the Think First

Program, a free injury educational seminar targeted to children. In addition, the Organization provides free

and discounted meeting room space and use of the Organization's campus to not-for-profit health

organizations. The Organization also provides free support groups and enrollment assistance in public

programs. Annually, the Organization sponsors the Burke Wheelchair Games, a sporting event that targets

both children and adults with disabilities. During this event, the Organization offers free admission for

economically disadvantaged participants.

Donor-restricted Gifts and Grants

Gifts of cash and other assets are reported as restricted support if they are received with donor stipulationsthat limit use of the donated assets. Grants restricted by grantors for particular operating purposes or forproperty, plant and equipment acquisitions are deemed to be earned and reported as temporarily restrictedgrant revenues when the expenditures have been incurred in compliance with the specific restrictions.When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction isaccomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in theconsolidated statements of operations as net assets released from restrictions. Donor-restrictedcontributions whose restrictions are met within the same year as received are reflected as unrestrictedcontributions in the accompanying consolidated financial statements.

Allowance for Uncollectible Accounts

The Organization provides an allowance for uncollectible accounts for estimated losses resulting from theunwillingness or inability of patients or third-party payors to make payment for services. The allowance isdetermined by analyzing specific accounts and historical data and trends. Patient accounts receivable arecharged off against the allowance for uncollectible accounts when management determines that recovery isunlikely and the Organization ceases collection efforts.

Fair Value Measurements

The Organization measures fair value as the price that would be received to sell an asset or paid to transfer aliability (the exit price) in an orderly transaction between market participants at the measurement date. Theaccounting guidance outlines a valuation framework and creates a fair value hierarchy in order to increasethe consistency and comparability of fair value measurements and the related disclosures. The fair valuehierarchy is broken down into three levels based on the source of inputs as follows:

Level 1 - Quoted prices are available in publicly traded markets for identical assets or liabilities as ofthe measurement date.

Level 2 - Pricing inputs, including broker quotes, are generally those other than exchange quoted prices

in publicly traded markets, which are either directly or indirectly observable as of the

measurement date, and fair value is determined through the use of valuation methodologies.

Also included in Level 2 are investments measured using a net asset value ("NAV") per

share, or its equivalent, that may be redeemed at that NAV at the date of the statement of

financial position or in the near term, which the Organization has generally considered to be

within 90 days.

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Level 3 - Pricing inputs are unobservable for the asset or liability and include situations where there islittle, if any, market activity for the asset or liability. The inputs into the determination of fairvalue require significant management judgment or estimation. Investments that are includedin this category generally include hedge funds, private investment funds and partnershipinterests, which are required to provide the Organization with periodic audited financialstatements. Also included in Level 3 are investments measured using NAV per share, or itsequivalent, that can never be redeemed at NAV or for which redemption at NAV is uncertaindue to lockup periods or other investment restrictions.

Due to/from Broker

Due to/from broker includes net amounts receivable for securities transactions that have not settled and cashheld at the broker at the date of the consolidated financial statements.

Reclassifications

Certain amounts in the 2012 consolidated financial statements have been reclassified to conform with thecurrent year presentation. Such reclassification did not change total assets, liabilities, revenues or expensesor changes in net assets reflected on the 2012 consolidated financial statements.

2. NET PATIENT SERVICE REVENUE

The Organization has agreements with third-party payors that provide for payments to the Organization at

amounts different from its established rates. A summary of the payment arrangements with major third-

party payors is as follows:

Medicare - The Organization is a 150-bed acute care facility having 120 beds designated for inpatient

rehabilitation facility ("IRF") use. The remaining 30 beds are for acute care use. The 120 IRF beds are

reimbursed under the Medicare Case Mix Grouping ("CMG") payment system. In order to qualify for

CMG reimbursement, at least 60% of all patients admitted to the facility must have certain clinical

characteristics that qualify them for rehabilitation treatment. As determined by CMS, the Organization's

IRF patient population was in compliance with this regulation for 2013 and 2012.

Medicaid - Inpatient and outpatient services rendered to Medicaid program beneficiaries are reimbursedon a per diem basis. The per diem rates contain prospective adjustments for the current year to accountfor changes in costs and volume.

Other - Payment agreements have been entered into with certain commercial insurance carriers, healthmaintenance organizations, and preferred provider organizations. The basis for payment to theOrganization under these agreements includes prospectively determined rates per discharge, discountsfrom established charges, and prospectively determined dailies.

Laws and regulations governing health care programs are complex and subject to interpretation. As a

result, there is at least a reasonable possibility that recorded estimates will change by a material amount in

the near term. Noncompliance with such laws and regulations could result in fines, penalties, and exclusion

from such programs. The federal government and many states have aggressively increased enforcement

under Medicare and Medicaid antifraud and abuse legislation. Recent federal initiatives have prompted a

-12-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

national review of federally funded health care programs. The Organization has a compliance program tomonitor conformance with applicable laws and regulations, but the possibility of future government reviewand interpretation exists. The Organization believes that it is in compliance, in all material respects, with allapplicable laws and regulations and, is not aware of any pending or threatened investigations involvingallegations of potential wrongdoing. While no such regulatory inquiries have been made, compliance withsuch laws and regulations can be subject to future government review and interpretation.

Noncompliance with such laws and regulations could result in repayments of amounts improperly

reimbursed, substantial monetary fines, civil and criminal penalties and exclusion from the Medicare and

Medicaid programs.

3. ASSETS WHOSE USE IS LIMITED

At December 31, 2013 and 2012, assets whose use is limited consist of the following:

December 31,

2013 2012

Foundation funds:

Equity securities $ 55,219,805 $ 48,539,612

Fixed income 1,046,890 1,067,015

Common trust funds/mutual funds 13,125,374 12,467,568

Limited partnerships 27,607,668 21,374,865

Due from broker 5,981 107,528

97,005,718 83,556,588

Trusteed funds:

Cash and cash equivalents 833,849 2,835,804

Equity securities 15,733,583 11,307,347

Fixed income 1,331,550 1,535,157

Common trust funds/mutual funds 3,086,893 1,634,029

Limited partnerships 4,441,605 3,966,769

Due (to) from broker (15,509 ) 4,227

25,411,971 21,283,333

Self-insurance trust:

Cash and cash equivalents 208,838 189,877

Fixed income 2,335,942 2,394,185

2,544,780 2,584,062

Restricted use - cash 217,775 199,938

Depreciation fund - cash and cash equivalents 31,776 31,776

- 13 -

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

December 31,

2013 2012

Donor-restricted long term investments:

Kennedy Duncan Fund:

Cash and cash equivalents

Equity securities

Due (to) from broker

Home Health Education Fund:

Cash and cash equivalents

Equity securities

Due (to) from broker

Employee recognition fund - cash equivalents

Restricted - cash

Total donor-restricted long-term investments

$ 9,937 $ 67,401

269,447 1,368,091

(2,872 ) 27,947

276,512 1,463,439

83,878 9,253

1,751,192 215,795

(4,833 ) 2,306

1,830,237 227,354

104,506 104,242

775,642 782,241

2,986,897 2,577,276

Total assets whose use is limited $ 128,198,917 $ 110,232,973

4. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS

The fair value framework requires the categorization of assets and liabilities into three levels based upon the

assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of

fair value, whereas Level 3 generally requires significant management judgment. The Organization used

the market approach as its valuation technique.

The following table summarizes the Organization's financial instruments by levels and excludes amountsdue (to) from broker disclosed in footnote 3:

December 31, 2013 Level 1 Level 2 Level 3 Total

Cash and cash equivalents $ 19,795,016 $ - $ - $ 19,795,016

Fixed income securities ( bond funds

and CD 's) 5,474,643 - - 5,474,643

Equity oriented funds 43,937,887 11,843 ,485 17,192,655 72,974,027

Limited partnerslups - 18,475,326 13,573,947 32,049,273

Common trust fiends /mutual funds - 16,212,267 - 16,212,267

69,207,546

Interest rate cap

Total assets .p VJ,LV

46,531,078

39,155

$ 46,570,233

30,766,602

.p JV, / VV,VVL

146,505,226

39,155

$ 146,544,381

-14-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

December 31, 2012 Level 1 Level 2 Level 3 Total

Cash and cash equivalents $ 26,936,641 $ - $ - $ 26,936,641

Fixed income securities (bond funds

and CD's) 10,007,462 - - 10,007,462

Equity oriented funds 43,472,906 3,764,715 14,193,224 61,430,845

Limited partnerships - 14,548 ,880 10 ,792,754 25,341,634

Common trust funds /mutual funds - 14,101,597 - 14,101,597

80,417,009 32,415,192 24,985,978 137,818,179

Interest rate cap - 23,815 - 23,815

Total assets $ 80,417,009 $ 32,439,007 $ 24,985,978 $ 137,841,994

For the years ended December 31, 2013 and 2012, purchases and sales of Level 3 investments were

transfers between Level 1 and Level 3 investments. At December 31, 2013, the Organization transferred

$10,102 from Level 3 to Level 2 due to the termination of a fund subsequent December 31, 2013. The

following tables summarize changes in fair values associated with Level 3 investments for the years ended

December 31, 2013 and 2012:

Net

Realized and

Balance at Unreal iz ed Purchases Sales Transfers Balance at

Le%el 3 tn%estments December 31, 2012 Gains ( Losses) (Contributions) (R ithdrawals) (net) December 31, 2013

Equity- oriented hinds S 14l.193224 S 1.728.405 g 1.529.980 5 (258.954) 5 - 5 17.192.655

Lunited partnerships 10.792.754 2.526.902 L68Lt8t (L4t6.788 ) (10.102 ) t3,573,947

Total 5 24.985.978 5 4,255,307 5 3,2t t,t6t 5 (1.675.742 ) 5 (10.102 ) 5 30.766.602

Net

Realized and

Balance at Unrealized Purchases Sales Balance at

Level 3 Investments December 31, 2011 Gains (Losses ) ( Contributions ) ( Withdrawals) December 31, 2012

Equity - oriented funds $ 14,626,514 $ (412,854) $ 78,456 $ (98,892) $ 14,19 3,224

Limited partnerships 9,421,755 1,141,062 2,900,669 (2,672,712 ) 10,792,754

Total $ 24,048,269 $ 730,208 $ 2,979,125 $ (2,771,624 ) $ 24,985,978

The Organization uses the NAV per share or its equivalent to determine fair value of all underlyinginvestments which : ( a) do not have readily determinable fair value and (b) prepare their financialstatements consistent with the measurement principle of an investment company or have the attributes of aninvestment company.

- 15 -

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

The following table lists investments by major category, in addition to the Organization's outstanding

capital commitments, which are due on demand, related to their investment in limited partnerships and

equity oriented funds are as follows at December 31, 2013 and 2012:

December 31,

December 31, December 31, 2013

2013 2012 Unfunded Redemption

Category Fair Value Fair Value Commitments Freqtienc^

Equity oriented hinds S 29,036,140 S 17,957,939 $ 129,052 Daily-Annually

Common trust funds /mutual Bi-Monthly-

hinds b' 16,212,267 14,101.597 - Quarterly

Monthly or at

Limited partnerships 3'-.049,227 3 225, 341.634 2,926,366 termination of tund

5 77,297,680 5 57,401,170 5 1,055,418

Redemption

Notice Lock up Period/

Period Remaining Life

30 - 60 days N/A

15 - 95 days N/A

Ranges between 10 -

15 days and no

redemption t - 5 Years

ta' Equiti• oriented funds. Investments are made up of equity investments in various limited liabilitycompanies and open end investment companies, some of which act as feeder funds.

tb Coninion trust funds/manual funds. Investments are made up of various private investment funds,

common trust funds, credit asset trust, corporate bond trust and investors trust.

Limited partnerships. Investments in limited partnerships.

The Organization ' s investment portfolio is exposed to various risks, such as interest rate, market risk and

credit risk. Because of the level of risk associated with such investments , changes in their values will occur

and such changes could materially affect the amounts reported in the accompanying consolidated financial

statements. The Organization values Level 3 investments based on the NAV, or its equivalent , reported

within audited financial statements provided by the fund managers, when available. The reported fair value

of Level 3 investments is sensitive to changes in the funds underlying NAV or its equivalent.

5. PERMANENTLY RESTRICTED NET ASSETS

Permanently restricted net assets consisted of the following at December 31, 2013 and 2012:

2013

Kennedy Duncan Fund

Home Health Education Fund

Employee Recognition Fund

Total

$ 387,585

300,000

100,000

2012

$ 387,585

300,000

100,000

$ 787,585 $ 787,585

Earnings on permanently restricted net assets are to be used in support of operations or specified program

initiatives as stipulated by the respective donor.

-16-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Endotirments - The endowment is composed of three permanently restricted endowments as ofDecember 31, 2013 and 2012, respectively. Net assets associated with endowment funds, including funds

designated by the Board of Directors to function as endowments, if any, are classified and reported based

on the existence or absence of donor-imposed restrictions.

Interpretations ofRelevant Latin - The Organization follows the New York Prudent Management of

Institutional Funds Act ("NYPMIFA"), which requires the preservation of the fair value of the original gift,

as of the gift date of the donor-restricted endowment funds, absent explicit donor stipulations to the

contrary. As a result of this interpretation, the Organization classifies as permanently restricted net assets:

(a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent

gifts to the permanent endowment, and (c) the accumulations to the permanent endowment made in

accordance with the directions of the applicable donor gift instrument, at the time the accumulation is

added to the fund.

The remaining portion of the donor-restricted endowment fund that is not classified in permanently

restricted net assets is classified as temporarily restricted nets assets until those amounts are appropriated

for expenditure by the Organization Board of Directors in a manner consistent with the standard of

prudence prescribed by NYPMIFA.

In accordance with NYPMIFA, the Organization considers the following factors in making a determination

to appropriate or accumulate donor-restricted endowment funds: the purpose, duration, and preservation of

the endowment fund; expected total return of investments; general economic conditions and the possible

effect of inflation or deflation; other resources of the institution; and the investment policy of the institution.

Changes in endowment funds and net assets for the years ended December 31, 2013 and 2012 consist of the

following:

Temporarilv Permanently

Restricted Restricted Total

Endowment funds and net assets, December 31, 2011

Investment returns

Investment loss

Net appreciation

Total investment return

Appropriation of endowment assets for expenditure

S 1,041,026 S 787,585 5 1,828,611

(7,419) - (7,419)

261,224 - 261,224

253,805 - 253,805

(950) - (950)

Endowment funds and net assets , December 31, 2012

Investment returns

Investment loss

Net appreciation

Total investment return

Appropriation of endowment assets for expenditure

Endowment funds and net assets , December 31, 2013

1,293,881 787,585 2,081,466

(13,115) - (13,115)

453,580 453,580

440,465 - 440,465

(400 ) - (400 )

5 1,733,946 5 787,585 5 2,521,531

-17-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Return Objectives and Risk Parameters - The Organization's primary investment objectives are to invest its

endowment principal to achieve growth of both principal value and income over time sufficient to preserve

and/or increase the real (inflation adjusted) purchasing power of the assets, and to provide a stable source of

perpetual financial support.

Strategies Emploi•ed for Achieving Objectives - The Organization relies on a total return strategy in which

active equity managers/funds are expected to achieve an annualized total rate of return over a three- to five-

year period, which exceeds an agreed upon benchmark rate of return, net of costs and fees. Total return is

defined as dividend and interest income plus realized and unrealized capital appreciation or depreciation.

Active fixed income managers are expected to exceed appropriate market indices, net of costs and fees.

When index funds are used, the return should closely track the appropriate index.

Funds tii ith Deficiencies - From time to time, the fair value of assets associated with individual donor-

restricted endowment funds may fall below the level that the donor or NYPMIFA requires the Organization

to retain as a fund of permanent duration. At December 31, 2013 and 2012, there were no aggregate

deficiencies of this nature reported within restricted net assets.

6. PROPERTY , PLANT AND EQUIPMENT

Property, plant and equipment at December 31, 2013 and 2012, is as follows:

2013

Land

Land improvements

Buildings

Fixed equipment

Major movable equipment

Less accumulated depreciation and amortization

Construction in progress

$ 176,475

6,185,902

57,771,553

28,102,34841,308,492

133,544,770

2012

$ 176,475

6,144,259

55,307,746

27,470,51639,550,014

128,649,010

(100,338,587 ) (95,144,023 )

33,206,183 33,504,987

119,873

$ 33,326,056

896,809

$ 34,401,796

Depreciation and amortization expense on property , plant and equipment was $5,288,659 and $5,233,229 at

December 31, 2013 and 2012, respectively.

At December 31, 2013 and 2012, included in property , plant and equipment is equipment recorded under a

capital lease arrangement with an original cost of $2,882,000. Accumulated amortization on the leased

equipment was approximately $ 881,356 and $732,449 at December 31, 2013 and 2012, respectively.

- 18 -

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

7. LONG-TERM DEBT

Long-term debt as of December 31 consisted of:

2013

Term loan

Capital lease collateralized by related equipment for

cogeneration plant with the Dormitory Authority of New

York State Tax Exempt Leasing Program (TELP), with

an interest rate of 5.94% and monthly payments through

March 2018

Less current portion

$ 5,906,832

1,106,267

7,013,099

2012

$ 6,254,294

1,328,674

7,582,968

(583,382 ) (569,868 )

$ 6,429,717 $ 7,013,100

The Organization has a term loan with a financial institution which was used for renovations to the

Institute's "Sturgis" building. The total amount of the term loan was $6,949,216 and has monthly principal

payments that began in January 2011 of $28,988, with a balloon payment due January 1, 2018 of

$4,515,408. The term loan has a variable interest rate based on monthly LIBOR plus 1.75% (1.92% and

1.96% at December 31, 2013 and 2012, respectively). The term loan is collateralized by certain

investments held by the Organization at 110% of the outstanding amount. The term loan has certain

financial covenants which are required to be maintained on a quarterly basis.

Additionally, the Organization has an interest rate cap agreement with a financial institution, to limit the

impact of increases in the interest rate on their term loan . The notional amount was $ 6, 800,000 and

$7,200 ,000 at December 31, 2013 and 2012, respectively. This agreement limits the Organization's

exposure to increasing interest rates by providing a cap at 3.75% per annum.

The interest rate cap agreement matures at the time the term loan matures. The fair value of the interest rate

cap agreement on December 31, 2013 and 2012 was estimated to be $39,155 and $23,815, respectively, and

is separately shown as a non-current asset in the consolidated statement of financial position. The

Organization may be exposed to credit loss in the event of nonperformance by the counterparty

(JP Morgan) to the interest rate cap agreement. However, the Organization does not anticipate

nonperformance as its counterparty is rated Aa 1 by Moody's.

-19-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Future minimum payments on the long-term debt as of December 31, 2013 , are as follows:

Capital LeaseTerm Loan Obligation

Years

2014 $ 347,856 $ 296,469

2015 347,856 296,469

2016 347,856 296,469

2017 347,856 296,469

2018 4,515,408 74,117

Total 5,906,832 1,259,993

Less amount representing interest on capital

lease obligation - (153,726 )

$ 5,906,832 $ 1,106,267

8. SELF-INSURANCE LIABILITIES

In June 2005, the Organization established a professional and general liability self-insurance program on a

claims-made basis for limits of $1 million per claim and $3 million in the annual aggregate. The

Organization also purchases commercial excess insurance coverage above these limits of coverage. This

program is maintained and funded through the means of a self-insurance trust, managed by an independent

fiduciary, and set up for the purpose of the payment of applicable claims from this program. An

independent actuary calculates liabilities in the trust. The estimated liability for this reserve is

approximately $1,878,000 and $1,712,000 at December 31, 2013 and 2012, respectively. Reserves for

outstanding liabilities relating to incidents occurring during the self-insurance program and under insurance

policies in force prior to June 2005, of approximately $19,000 and $21,000, were calculated as of

December 31, 2013 and 2012, respectively, at an expected confidence level of loss and discounted basis.

The Organization also maintains an accrual, calculated at an expected confidence level of loss and

discounted basis, of approximately $1,219,000 and $1,135,000, for the period coverage as of December 3 1,

2013 and 2012, respectively. The Organization has accrued its best estimate of the ultimate cost of losses

payable under its self-insurance program at estimated present value based on a discount rate of 3.58% and

3.63% at December 31, 2013 and 2012, respectively.

9. ACCRUED RETIREMENT BENEFITS

The Organization has a noncontributory defined benefit pension plan (the "Plan") covering substantially allits employees. The benefits are based on years of service and the employees' compensation during the lastfive years of covered employment. Contributions are intended to provide not only for benefits attributed toservice to date, but also for those expected to be earned in the future. As of January 1, 2013, theOrganization changed the formula for future benefit accruals. The Organization also sponsors asupplemental retirement plan for certain executives. The Organization's funding policy is to contributeannually an amount no less than the minimum amount required by ERISA.

-20-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

In addition to the Organization's defined benefit pension plan, the Organization provides postretirementmedical and life insurance benefits ("OPEB"). To be eligible for the medical benefits, the employee mustbe at least 65 years old and a participant in the defined benefit pension plan. To be eligible for the lifeinsurance benefits, the employee must be at least 55 years old and vested in the defined benefit pensionplan. The Organization funds these benefit costs on a pay-as-you-go basis.

The following table sets forth the plans, funded status, and amounts recognized in the Organization'sconsolidated financial statements:

Obligations and funded status

Organization's contributions

Benefit payments

Unfunded status - end of year - amount

recognized to the consolidated

statements of financial position

Benefit obligation and fair value of plan

assets are as follows

Projected benefit obligation

Accumulated benefit obligation

Fair value of plan assets

Other accrued retirement benefits

adjustment

Defined Benefit Plans Other Postretirenient Benefits

2013 2012 2013 2012

S 3,950,476 S 6,128,402 5 116,552 5 99,835

(3,478,863 ) (3,062,386 ) (116,552 ) (99,835 )

(26,520,664 ) (42,304,742 ) (4,111,137 ) (5,589,881 )

(93,436,060 ) (100,871,642 ) (4,111,137 ) (5,589,881 )

(93,133,373 ) (100,826,153 ) - -

66,915,396 58,566,900 - -

(15,865,045 ) (771,192 ) (1,591,686 ) (1,890,186 )

Service cost 2,056,637 3,798,294 197,221 408,279

Interest cost 4,149,293 4,410,563 211,768 355,023

Expected return on plan assets (4,712,103) (4,222,305) - -

Amortization of prior service cost (520,999) (143,830) (94,265) -

Recognized actuarial gain 3 ,058,616 1,857,351 (85,230 ) -

Net periodic benefit cost S 4,031,444 $ 5,700,073 $ 229,494 $ 763,302

At December 31, 2013, the expected estimated aggregate amount from unrestricted net assets into net

periodic benefit cost related to net actuarial loss and prior service cost is $1 , 291,003 and $(671,823),

respectively.

-21 -

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Weighted-average assumptions used in determining the benefit obligation at December 31, 2013 and 2012,

were as follows:

Assumptions

Weighted-average assumptions used in computing

benefit obligation at December 31

Discount rate

Rate of compensation increase

Initial health care cost trend rate

Ultimate trend rate in 2014 and forward

Weighted-average assumptions used in computing

net periodic benefit cost for the years ended

December 31

Discount rate

Expected long-term return on assets

Rate of compensation increase

Initial health care cost trend rate

Ultimate trend rate in 2013 and forward

Other Postretirement

Defined Benefit Plans Benefits

2013 2012 2013 2012

509°% 429 O/ 5 10 O/ 531 O/2 50 2 50 - -- - 3 00 4 75

300 475

429 504 444 5318 00 8 00 - -2 50 2 50 - -- - 474 475

300 475

To develop the expected long-term rate of return on plan assets, the Organization considered the historical

returns and the future expectations for returns for each asset class, as well as the target asset allocation of

the pension portfolio. This approach resulted in the selection of the 8.00% long-term rate of return on Plan

assets assumption.

The measurement date used to determine the Plan measurements is December 3 1.

The Plan's weighted-average asset allocation at December 31, 2013 and 2012 is as follows:

2013 2012

Equity securities 41 % 34 %

Common trusts funds/mutual funds 39 41

Cash and cash equivalents 5 11

Limited partnerships 15 14

100% 100%

-22-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Fair Values of Plan Assets

The following table presents the Organization's categorization of the assets of the Plan within the fair value

hierarchy using the market approach valuation technique at December 31, 2013 and 2012:

December 31, 2013 Level 1 Level 2 Level 3 Total

Cash and cash equivalents S 3,699,563 S - S - 5 3,699,563

Equity securities(a) 23,115,850 4,097,345 - 27,213,195

Common trust fimds/mutual funds(b)

22,437,778 3,388,537 - 25,826,315

Limited Partnership (`) - 10,176,323 - 10,176,323

5 49,253,191 5 17,662,205 5 - 5 66,915,396

December 31, 2012 Level 1 Level 2 Level 3 Total

Cash and cash equivalents 5 6,598,419 5 - S - 5 6,598,419

Equity securities (°) 15,732,331 3,693,563 - 19,425,894

Common trust funds /mutual funds (t') 21,089,711 3,051,984 - 24,141,695

Limited Partnership (`) - 8,400,892 - 8,400,892

5 43,420,461 5 15,146,439 5 - 5 58,566,900

WComprised of -various equity securities which include private equity securities. U S and foreign large. mid-cap and small-cap

equities

(h) Comprised of debt securities in publicly and privately held mutual funds(C) Comprised of investments in limited partnership

The Plan had unfunded capital commitments of $229,068 at December 31, 2013.

Target Allocations

The Plan's targeted asset allocation is as follows:

Min % Target % Max %

Asset Class

Growth assets , US Equity, International Equity,

Hedge Funds, Private Equity

Fixed Income

Real Assets Commodities, Real Estate, MLP's

Cash

50% 70% 80%

0 10 20

10 20 30

0 0 10

-23-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Contributions

The Organization's required contributions to the defined benefit plans and the postretirement plan in 2014

are approximately $3,710,000 and $ 138,000, respectively. These contributions represent the amount

necessary to meet expected benefit payments for those individuals who are expected to terminate or retire

during 2013 and who become eligible for a benefit.

Estimated Future Benefit Payments

Future benefit payments by the Plan and OPEB, reflective of expected future service, are expected to bepaid as follows:

Fiscal Years Ending December 31,

2014

2015

2016

2017

2018

2019 - 2023

Plan OPEB

$ 6,220,186 $ 137,523

4,646,346 146,136

4,820,467 161,324

5,011,214 171,818

5,258,167 182,108

30,306,928 1,179,211

Defined Contribution Plan - The Institute has a defined contribution benefit plan covering substantially allof its employees. Benefits are provided by fixed-dollar annuities issued to each participant. Contributionsare made automatically based on a percentage of the participant's regular salary in accordance with thefollowing schedule:

On Portion of On Salary Above

Salary within Social Social SecuritySecurity Wage Base Wage Base

Under age 40 5 10

Age 40-49 10 15

Age 50 and above 15 20

The Organization's benefit expense for the defined contribution plan for the years ended December 3 1,2013 and 2012, was approximately $421,943 and $389,700, respectively.

10. CONCENTRATION OF CREDIT RISK

The Organization provides health care services through its inpatient and outpatient care facilities. TheOrganization grants credit without collateral to patients, substantially all of who are local residents;however, it routinely obtains assignment of (or is otherwise entitled to receive) patients' benefits payableunder their health insurance programs, plans, or policies (e.g., Medicare, Medicaid, Blue Cross, healthmaintenance organizations, and commercial insurance policies).

-24-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

Patient accounts receivable by financial class as a percentage of total patient accounts receivable at

December 31, 2013 and 2012, are as follows:

2013 2012

Medicare 50 % 52 %

Blue Cross 13 12

Medicaid 2 1

Other third-party payors 32 31

Patients 3 4

100% 100%

The Medicare program approximated 66% of net patient service revenue for the years ended December 3 1,

2013 and 2012.

11. COMMITMENTS AND CONTINGENCIES

Operating Leases - The minimum lease commitments for various equipment and facilities under non-cancelable operating leases are in effect as of December 31, 2013, as follows:

Years

2014 $ 634,739

2015 545,860

2016 340,240

2017 80,771

2018 59,595

Thereafter 14,162

Total $ 1,675,367

Rental expense amounted to S581,112 and $457,000 for the years ended December 31, 2013 and 2012,

respectively.

Litigation - The Organization is involved in litigation arising in the course of business. After consultationwith legal counsel, management estimates that these matters will be resolved without material adverseeffect on the Organization's future consolidated financial position or results of operations.

-25-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESNotes to Consolidated StatementsDecember 31, 2013 and 2012

12. FUNCTIONAL EXPENSES

The Organization provides rehabilitative health care services to patients and related support activities as

described in Note 1. Expenses related to providing these services, included in the consolidated statements

of operations at December 31, 2013 and 2012, are as follows:

2013 2012

Health care services

General and administrative

Research

Total expenses

$ 50,523,931 $ 47,800,636

31,200,424 31,368,757

7,395,228 6,855,716

$ 89,119,583 $ 86,025,109

13. SUBSEQUENT EVENTS

The Organization evaluated its December 31, 2013 consolidated financial statements for subsequent eventsthrough May 27, 2014, the date the consolidated financial statements were issued. The Organization is notaware of any subsequent events which would require recognition or disclosure in the accompanyingconsolidated financial statements except as follows:

The Organization had capital calls subsequent to December 31, 2013 of $168,769, including pension plan

assets.

-26-

SUPPLEMENTARY INFORMATION

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESNet Patient Service RevenueFor the years ended December 31, 2013 and 2012

ROUTINE PATIENT CARE

PHYSICIAN FEES

OTHER PROFESSIONAL SERVICES

Radiology - diagnostic

Laboratory

Electrocardiography

Physical therapy

Respiratory therapy

Occupational therapy

Central services

Pharmacy

Speech and hearing

Orthotics and prosthetics

Transportation

Other

Total other professional services

Total patient care revenue - gross charges

LESS CONTRACTUAL ALLOWANCES

Net patient service revenue

2013 2012

Inpatient Outpatient Total Inpatient Outpatient Total

$ 61,985,500 $ - $ 61,985,500 $ 62,498,100 $ - $ 62,498,100

2,713,452 236 2,713,688 2,903,484 - 2,903,484

381,918 250,160 632,078 399,797 223,511 623,308

2,676,350 237 2,676,587 2,896,933 - 2,896,933

518,323 1,222,952 1,741,275 571,439 1,093,050 1,664,489

13,401,808 12,017,076 25,418,884 13,546,948 10,195,853 23,742,801

2,425,836 - 2,425,836 2,270,203 - 2,270,203

12,049,797 1,066,392 13,116,189 12,290,576 968,591 13,259,167

1,532,205 8,088 1,540,293 1,484,883 5,835 1,490,718

5,657,629 28,629 5,686,258 6,010,636 32,596 6,043,232

2,261,672 501,634 2,763,306 2,228,508 608,535 2,837,043

253,387 1,330 254,717 270,249 (665) 269,584

- - - 24,650 - 24,650

- 325 325 132 393 525

41,158,925 15,096,823 56,255,748 41,994,954 13,127,699 55,122,653

105,857,877 15,097,059 120,954,936 107,396,538 13,127,699 120,524,237

(50,201,619 ) (7,420,639 ) (57,622,258 ) (49,804,823 ) (6,430,383 ) (56,235,206 )

$ 55,656,258 $ 7,676,420 $ 63,332,678 $ 57,591,715 $ 6,697,316 $ 64,289,031

-28-

THE WINIFRED MASTERSON BURKE REHABILITATIONHOSPITAL AND SUBSIDIARIESOther Revenue and Net Assets Released From Restrictions - OperationsFor the years ended December 31, 2013 and 2012

2013 2012

OTHER REVENUE

Employees' benefit contributions

Purchase discounts

Sale of medical abstracts

Community fitness center

Rental of space

Apartment housing rental

Offsite programs

Miscellaneous

Total other revenue

NET ASSETS RELEASED FROM RESTRICTIONS - OPERATIONS

Advanced Biologics Novartis Study

Accorda Studies

Balcofen Study

Kohlberg Grant

ARA Research Institute Study

Gift Shop

Wheelchair Athletics

Will Rogers Pulmonary Fund

Other

Net assets released from restrictions - operations

$ 801,476 $ 844,179

4,489 1,640

2,152 4,171

535,376 531,321

1,011,803 870,345

423,450 425,494

2,544,749 2,850,860

195,103 124,395

$ 5,518,598 $ 5,652,405

$ - $ 16,878

39,054 -

20,655 -

39,277 -

- 99

33,209 23,857

18,732 20,831

95,000 65,000

16,384 42,988

$ 262,311 $ 169,653

-29-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESChanges in Temporarily Restricted Net Assets - Specific Purpose FundFor the years ended December 31, 2013 and 2012

Audio-visual Laboratory

Accorda Studies

ARA Research Institute

Baclofen Study

Kohlberg Grant

Burke Gift Shop

Child Care Fund

Design for Disabled

Employee Recognition

Gisondi Alz Rehab

Heart Monitor Fund

Home Health Education Fund

IMPAX Spinal Cord Injury

Kennedy Duncan Fund

Leahy Pulmonary Fund

Medical Director

Myerson Equipment Fund

Nielsen Foundation Handcycling

Novella Clinic Study

Nuero Rehab Fellowship

Patient Greenhouse Fund

Prosthetic Fund

Quintiles Drug Study E2020

Optenunsigbt

Reeve Foundation

Rbeumatology

Social Service

Speech and Hearing

Spinal Cord Studies

Sports Neurology

Vocational Education

Volunteers Fund

Wheelchair Athletics

Will Rogers Fund

Net Assets Released

Net Assets from Restrictions Net Assets

December 31, Investments Capital December 31,

2012 Contributions Return Operations Acquisitions 2013

S 753 S - S - S - S - S 75337,573 13,909 - (39,054) 12,428

15,815 - - - - 15,815

7,495 13,160 - (20,655) - -

- 110,000 - (39,277) - 70,723

212,074 60,218 423 (33,209) (43,242) 196,264

454 - - - - 454

1,772 - - - - 1,772

2,071 7,401 264 (7,711) - 2,025

20,000 - - - - 20,000

2,773 - - - - 2,773

74,884 - 49,159 - - 124,043

- 3,250 - - - 3,250

1,218,463 - 391,046 - - 1,609,509

106,199 520 - (275) - 106,444

39,167 - - - - 39,167

7,124 85,200 - (110) (92,125) 89

- 35,583 35,583

1,425 - - - - 1,425

- 120,000 - - - 120,000

6,032 3,911 - (3,340) - 6,603

34,324 2,346 - (1,772) (3,970) 30,928

499 - - - - 499

- 950 - - - 950

6,000 - - - (6,000) -

5,879 - - - - 5,879

24,884 645 - (961) - 24,568

10,275 - - - - 10,275

8,750 5,500 - - - 14,250

7,469 1,100 - (354) - 8,215

6,838 - - (1,861) - 4,977

14,473 5,000 - - (3,798) 15,675

149,705 34,364 - (18,732) - 165,33710,000 85,000 - (95,000 ) - -

S 2,033,170 S 588,057 S 440,892 S (262,311 ) S (149,135 ) S 2,650,673

-30-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESExpensesFor the years ended December 31, 2013 and 2012

2013 2012

Salaries Supplies and Salaries Supplies and

MEDICAL REHABILITATION SERVICES and Wages Other Expenses Total and Wages Other Expenses Total

NURSING AND MEDICALGeneral nursing $ 12,543,563 $ 492,257 $ 13,035,820 $ 12,736,671 $ 491,511 $ 13,228,182Medical services 7,416,085 1,125,298 8,541,383 6,855,213 994,613 7,849,826Admitting 257,672 5,839 263,511 248,651 7,501 256,152General services 86,217 298,884 385,101 85,746 327,625 413,371

Total nursing and medical 20,303,537 1,922,278 22,225,815 19,926,281 1,821,250 21,747,531

OTHER PROFESSIONALRadiology - diagnostic 220,230 154,775 375,005 218,179 162,624 380,803Laboratory - 749,237 749,237 - 821,242 821,242Electrocardiography 214,283 49,093 263,376 210,708 54,697 265,405Physical therapy 4,705,733 176,269 4,882,002 4,546,825 187,288 4,734,113Occupational therapy 2,697,022 76,374 2,773,396 2,636,764 81,324 2,718,088Pharmacy 888,389 1,117,445 2,005,834 886,468 1,306,412 2,192,880Speech and hearing 822,274 15,824 838,098 800,758 17,592 818,350Orthotics and prosthetics - 218,731 218,731 - 230,475 230,475Medical records 290,273 55,345 345,618 298,920 45,765 344,685Social service 877,097 17,923 895,020 889,366 22,140 911,506

Total other professional 10,715,301 2,631,016 13,346,317 10,487,988 2,929,559 13,417,547

AMBULATORY CARE 87,872 675 88,547 88,887 1,008 89,895

GENERAL SERVICESDietary 1,361,643 1,142,018 2,503,661 1,357,307 1,118,623 2,475,930Operation and maintenance of plant 1,869,945 2,303,303 4,173,248 1,838,090 2,159,472 3,997,562Housekeeping 1,027,162 412,214 1,439,376 1,037,410 408,530 1,445,940Laundry and linen 106,823 5,452 112,275 108,842 10,990 119,832

Total general services $ 4,365,573 $ 3,862,987 $ 8,228,560 $ 4,341,649 $ 3,697,615 $ 8,039,264

-31-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESExpensesFor the years ended December 31, 2013 and 2012

MEDICAL REHABILITATION SERVICES

ADMINISTRATIVE AND FISCAL SERVICES

Executive office

Fiscal office

Personnel

Purchasing and storeroom

Communication

Volunteer service

Data Processing

Insurance

Public relations

Development

Managed care

Total administrative and fiscal services

PROVISION FOR BAD DEBTS

EMPLOYEE BENEFITS

Pension and other postretirement benefit expenses

Federal Insurance Contributions Act taxes

Health insurance

Workers ' compensation insurance

Unemployment insurance

Disability insurance

Total employee benefits

INTEREST

DEPRECIATION AND AMORTIZATION

Total medical rehabilitation services

2013 2012

Salaries Supplies and Salaries Supplies and

and Wages Other Expenses Total and Wages Other Expenses Total

$ 580,032 $ 1,539,872 $ 2,119,904 $ 527,415 $ 1,231,317 $ 1,758,732

2,146,412 491,895 2,638,307 2 , 122,756 442,129 2,564,885

518,587 235,074 753,661 506,716 279,735 786,451

224,432 5,096 229,528 219,916 5,386 225,302

121,133 124,743 245,876 117,948 120,125 238,073

67,233 3,485 70,718 71,154 15,395 86,549

1,035,572 1,092,182 2,127,754 933,300 837,473 1,770,773

- 1,347,508 1,347,508 - 696,756 696,756

159,058 740,319 899,377 153,411 629,973 783,384

402,326 216,414 618,740 439,226 208,829 648,055

- - - 836 60 896

5,254,785 5,796,588 11,051,373 5,092,678 4,467,178 9,559,856

- 268,465 268,465 - 221,967 221,967

- 4,935,818 4,935,818 - 7,129,321 7,129,321

- 2,954,156 2,954,156 - 2,923,160 2,923,160

- 6,429,875 6,429,875 - 6,230,932 6,230,932

- 523,780 523,780 - 589,554 589,554

- 49,823 49,823 - 59,282 59,282

- 47,670 47,670 - 46,518 46,518

- 14,941,122 14,941,122 - 16,978,767 16,978,767

- 73,511 73,511 - 86,283 86,283

- 3,935,074 3,935,074 - 3,893,885 3,893,885

$ 40,727,068 $ 33,431,716 $ 74,158,784 $ 39,937,483 $ 34,097,512 $ 74,034,995

-32-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESExpensesFor the years ended December 31, 2013 and 2012

MEDICAL REHABILITATION SERVICES

FOUNDATION SERVICESGrantor services

Management and general

Total foundation services

MEDICAL RESEARCH SERVICESMedical researchEmployee benefits - medical research

Management and general

Interest expense

Employee benefits - management and general

Depreciation

Total medical research services

Subtotal expenses

CONSOLIDATING ENTRIES

Consolidated expenses

2013 2012

Salaries Supplies and Salaries Supplies and

and Wages Other Expenses Total and Wages Other Expenses Total

$ - $ 5,158,751 $ 5,158,751 $ - $ 5,043,463 $ 5,043,4631,314,723 1,314,723 - 578,540 578,540

- 6,473,474 6,473,474 - 5,622,003 5,622,003

3,528,888 3,274,263 6,803,151 3,138,625 2,775,561 5,914,186- 1,087,793 1,087,793 - 934,879 934,879

1,667,707 2,729,360 4,397,067 1,666,618 2,607,623 4,274,241- 119,343 119,343 - 129,418 129,418

518,482 518,482 - 498,330 498,330- 1,353,585 1,353,585 - 1,339,344 1,339,344

5,196,595 9,082,826 14,279,421 4,805,243 8,285,155 13,090,398

45,923,663 48,988,016 94,911,679 44,742,726 48,004,670 92,747,396

- (6,792,096 ) (6,792,096 ) - (6,722,287 ) (6,722,287 )

$ 45,923,663 $ 42,195,920 $ 88,119,583 $ 44,742,726 $ 41,282,383 $ 86,025,109

-33-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESRefundable Advances and Grant RevenueFor the years ended December 31, 2013 and 2012

ccount Name

Refundable

Advances

Decembel31,

2012

Gifts

Donations

and Federal

Giants Giants

Expendihues

Direct Iodiiect

Costs Costs

Consoltioms/ Reclasses

Equipment and

Additions Tiansfels

Refundable

Advances

Decembel31,

2013

PRIVATE GRANTS

EISAI- Joidan $ 1,478 $ $ $ $ $ $ $ 1,478

Columbia P otess Studv - - - - - - - -

Lupus Foundation 26,887 - - - - - (26,887) -

Huntei C ollege 4115 - - 4115 - - - -

Ch e b ook 15,3112 - - - - - - 15,3112

C aidiac Fund 11,283 - - 2,965 - - - 8,318

Forest Phanuaceutical 1,8611 - - 1,419 164 - - 277

Scallon 157 - - - - - - 157

Korean Unne sov 57 - - - - - - 57

Animal Care Cente 37,978 - - (73,263) - - - 161,241

Fuj ismNa (o p 1,265 - - - - - - 1,265

Accoida Theiapeutics - - - - - - - -

UC SD Coop Studv 7611 - - 7611 - - - -

Mitio Detects-Gibson 4,249 1,111111 - 468 - - - 4,781

CornellFellm+ship 2,138 - - 2,138 - - - -

Mt Sinai 21,31111 - - - - - - 21,31111

Ajiti- Micio - 374 - - - - (374) -

Haitman Foundation 31,941 - - - - - - 81,941

Wveth Acute Stoke Study - 19,7112 - - - - (19,7112) -

Wveth Tiaining Studv - 3,469 - - - - (8,469) -

Liebenuan Fund 3,8611 1,111111 - 4,8611 - - - -

IRSF Fund 3,111 - - - - - - 8,111

Whitehall Fund 49,889 - - 49,889 - - - -

C ornell Goldtme - 1113,547 - - - - (1113,547) -

-34-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESRefundable Advances and Grant RevenueFor the years ended December 31, 2013 and 2012

ccowrtName

Refundable

4d5ance,

December 31 ,

20 12

Gdt,

Donations

and Federal

Giant, Giant,

Bit ect

Coctc

Expeit ditures

Induect

Coctc

Conconmmc/

Equipment

4ddttton,

Recla,,e,

and

Ti ancfetc

Refundable

4d5ance,

December 31,

2013

Don Sperling Fund $ 16 705 $ 11 200 $ - $ - $ - $ - $ 500 $ 25 405

Allen & C o (,oIdilnr 10 000 30 000 - 2 097 - 25 647 - 9 256

Holhnan L.aRoJtr :6 6:5 - - 22 573 - - - 13 762

No^arlu roman 51 078 - - - - - - 51 078

Dana Foundation -Elder 89 544 - - 45 151 - - - 44 693

Rear Foundation - 75 000 - 10 131 - - (52 420) 12446

tohmon & Iohmon 31 151 425 - 15 634 12 663 - - 3 309

C annrl Fundy 327 570 35 105 - 52 491 - 162 696 - 150 788

Marti of Dmtrs 15 080 75 000 - 64 136 6414 - - 19 5110

Adelson Foundation 231 844 369 553 - 375 591 - 3 747 - 222 359

Nnen,an Diabetes 4»o, - 102 991 - 89 191, 13 379 1 062 643 -

Slml[h Pephdrl - 129 552 - 110 499 22 100 - 3 017 -

C HDI M to DN slund ion - 237 92S - 214 087 32 113 3 537 12 109 -

US brad Binational I S 163 30 045 - 29 157 4 374 - - 14 68 0

4drbon- LangleN 199 571 29, 900 - 232 552 - 949 - 259 970

uttal Rehab S 000 5 000 - 535 - - - 12 465

Rear Foundation - Zhong 25 000 - - 23 3SS - 1362 - 250

Pa,dh Norlhnrsl Labs - 155 426 - - - 155 426 - -

Restore Nruro hn - [42 555 - 95 [55 14 27, 6 224 (15 100) 11 833

hn al SC I PR - 11,000 - 2 177 - - - 10 S23

Adelson Edt^ar& - 50 000 - 65 016 - - 15 016 -

Brain Map Stud } Labar - 4 167 - 1 9'_1 - - - 2 246

Retinal Photo - Pnthk\ - - - 7 361 3 294 - 10 655 -

tJSM4-O' Done, an - - - 49643 - - 49643 -

Canrl-Fnel - 125000 - 19453 - 6000 - 99517

Can el- Donohoe - 125 000 - 25 941 - - - 99 059

C an el-Cannel - 125000 - 17572 - - - 107425

C an el- Prtthk \ - 125 000 - 13 242 - 35 004 - 76 754

Pathntaker Mob ht - 25 000 - 930 - - - 24 070

Skirball- EdtN ar& - 50 000 - - - - - 50 000

NRF Korea - 31 022 - - - - - 31 p"

Retinal Rrsrardh - 20 000 - - - - - 20 000

-35-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESRefundable Advances and Grant RevenueFor the years ended December 31, 2013 and 2012

account Name

w his Research Fund

Goldsmith D

Cornell Schiff

Volpe Research Fund

NYS Retinal Stud)

Stroke Research

NYS SCIRB - Langley

Alzheimer's Disease- Shi

NYS Alzheimer's Disease - Jordan

Dementia Other

wood Kalb

Alzheimer c Research

Research Fund

Medical Directors Fund

Goldsmith Foundation A

Goldsmith Foundation B

Goldsmith Foundation C

Dr I Foundation

Total prnate grants

FEDERAL GRANTS

NLA-Mitochondnal D)shmchrniin Aging

NINDS-hijur) and adaptation in the deN eloping rat corlicospmal

MNDS-HDAC6 Target for regeneration lolloumg incur)

NICHHD-Transcramal Direct Current Stimulation & Robotics

NE[-B-RAF dries regeneratne axon groulh in the optic nerve

NE[-B-RAF dries regeneratne axon groulh in the optic nerve-Supple

NINDS-hupact of BDNF SNP on stroke-induced plasticity

NIH-Role of CD36 in Ischemic hillammahrni

N[MH-Allelic Choice in Rett Syndrome

Refundable Girls Refundable

ad%auces Donations Expenditures Cousorlimus/ Reclasses ad%auces

December 31, and Federal Direct Indirect Equpmeul and December 31,

2012 Grains Grains Costs Costs adddious Transfers 2013

7.050 S - - - - - S 7.050

- - 18.750 - - 18.750 -

31.145 - - 31.145 -

1.658 - - - - - (1.650) -

- 14.592 - 16.2S4 3.257 - 4.949 -

18.223 5.146 - 3.301 - - - 20.065

- 190.356 - 156.431 31.256 - (2.669) -

- - (f34) - - - 234

- 106.060 - 52.262 - 20.000 (.795) -

S69 - - 869 - - - -

S.764 - - 5.764 - - - -

I.341 738 - 1.941 - - - 138

11.510 - - - - - - 11.510

25.500 3.056 - 25.000 - - - 5S6

51.531 50.000 - 55.555 - - - 45.946

19.200 50.000 - 34.291 - - - 34.909

20.000 50.000 - - - - (1S.750) 51.250

4.870 - - 4.870 - - - -

1.543.357 3.001.412 - 2.017.859 143,317 424.954 (106.947 ) 1.851.692

- - 1.655.792 545.572 411.042 701.S7S - -

1SS.349 165.560 13.269 9.220 - -

374.057 162.544 131.661 79.S52 - -

593,933 231.S43 1S7.793 174.297 - -

245.976 129.127 104.593 12.256 - -

207.369 109.382 92.975 5.012 - -

465.1S5 243.114 206.646 15.425 - -

380.S54 174.773 141.567 64.514 - -

374.561 213.665 160.S93 - - -

-36-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESRefundable Advances and Grant RevenueFor the years ended December 31, 2013 and 2012

ccount Name

Refundable

Ad%ances

December 31,

2012

Gifts

Donations

and

Grants

Federal

Grants

Direct

Costs

Expenditures

Indirect

Costs

Consortiums/

Equipment

Additions

Reclasses

and

Transfers

NEI-Retinal Neural Processing Dunne Retinal Degenerall \e $ - $ - $ 410.076 $ 211.928 $ 176.148 $ - S - S

NEI-Retinal Neural Processing Dunne Retinal Degenerall \ e-Supple - - 15.020 78,014 (61,412) 41S -

N[NR-A%onal Transport Local Translation in Neuropathic Pain - - I 11,281 74,889 56,192 - -

NICHHD-Non-in\asne stimulation for impro\ ingmotor function - - 80,224 41.140 19,084 - -

NINDSS-Mechanisms of cerebral palsy reco\erv induced by balancing - - 187,411 158,O15 I2,64 16,71 i -

NICHHD-Impact of motor connecin dv on efficacy of hand therapy - - 80,015 41.044 18,991 - -

NIA-Plasticity in Aging - - 516.869 285,561 2iI,i06 -

Total federal grants - - 5.909.992 2,888,796 1,941,571 1,079,625

Totals S 1.541.157 S 1,001.412 5 5.909.992 5 4.906.655 5 2.084.888 5 1,504,579 5 (106.947) 5

Refundable

Ad%ances

December 31,

2013

1.851.692_

-37-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statements of Financial PositionAs of December 31, 2013

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Short investments

Assets whose use is limited required for current liabilities

Accounts receivable for services to patients - net

Third Party receivables

Prepaid expenses

Inventory of supplies

Due from affiliated organizations

Other receivables

Total current assets

ASSETS WHOSE USE IS LIMITED

Foundation funds

Trusteed funds

Self-insurance trust

Restricted use cash

Depreciation fund

Donor-restricted lonerterm investments

Less assets whose use is limited required for current liabilities

Deferred financing costs - net

Interest rate cap

Property, plant and equipment - net

Total assets

Elimination Consolidated

Hospital Foundation Institute Total Entries Balances

$ 11.392.266 S 3.955.881 S 2.180.668 5 17.528.815 5 - 5 17.528.815

760.261 - - 760.261 - 760.261

764.775 - - 764.775 - 764.775

7.725.841 - - 7.725.841 - 7.725.841

2.746.835 - - 2.746.835 - 2.746.835

1.538.442 - 88.803 1.627.245 - 1.627.245

509.062 - - 509.062 - 509.062

391.267 - 32.012 423.279 (423.279) -

27.21 L876

25.411.971

2.544.780

217.775

31.776

2.986.897

31.193.199

(764.775)

30.428.424

23.357.333

3.970.756

97.005.718

97.005.718

3.727.228 34.909.860 (423.279 ) 34.486.581

97.005.718

25.411.971

2.544.780

217.775

31.776

2.986.897

97.005.718

25.411.971

2.544.780

217.775

31.776

2.986.897

128.198.917

(764.775)

- 127.434.142

95.514 95.514

39.155 39.155

9.968.723 33.326.056

5 13.830.620 5 195.804.727

128.198.917

(764.775 )

127.434.142

95.514

39.155

33.326.056

S (423.279 ) 5 195.381.448

The aeeonipan17ng notes are an integral part of these consolidated financial statements

-38-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statements of Financial PositionAs of December 31, 2013

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts payable

Accrued expenses

Current portion of long-term debt

Estimated self-insurance liabilities

Refundable advances

Accrued retirement benefits

Due to affiliated organizations

Total current liabilities

Long-term debt , net of current portion

Estimated self-insurance liabilities, net of current portion

Accrued retirement benefits

Total liabilities

NET ASSETS

Unrestricted

Temporarily restricted

permanently restricted

Total net assets

Total liabilities and net assets

Elimination Consolidated

Hospital Foundation Institute Total Entries Balances

S 2,629,059 S 195,917 5 669,971 5 3,494,949 5 -

2,490,179 - 85 3,012 3,343,191 -

2 35,921 - 347,461 58 3, 382 -

547,000 - - 547,000 -

- - 1,851,692 1,851,692 -

117,521 - - 117,521 -

- 42 3,279 - 42 3,279 (42 3,279 )

6,0 39,682 619,196 3,722,118 10, 381,016 (42 3,279 )

870, 145 - 5,559-33 72 6,429,717 -

2,569,456 - - 2,569,456 -

30,494,278 - - 30,494,278 -

39,973,761 619,196 9,281,510 49,874,467 (423,279 )

$ 3,494,949

3,343,191

583,382

547,000

1,851,692

117,52 1

9,957,7 37

6,429,717

2,569,456

49,451,188

37,585,614 100,357,278 4,549,110 142,492,002 142, 492,002

2,650,67 1 - - 2,650,67 1 - 2,650,67 1

787,585 - - 787,585 - 787,585

41,023,872 100,357,278 4,549,110 145,930,260 - 145,930,260

S 80,997,6 1.1 5 100,976,474 5 11,8 30,620 5 195,804,727 5 (42 3,279 ) 5 195, 381,448

The aeeonipan17ng notes are an integral part of these consolida ted financial statements

-39-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statements of Financial PositionAs of December 31, 2012

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Short investments

Assets whose use is limited required for current liabilities

Accounts receivable for services to patients - net

Prepaid expenses

Inventory of supplies

Due from affiliated organizations

Other receivables

Total current assets

ASSETS WHOSE USE IS LIMITED

Foundation funds

Trusteed funds

Self-insurance trust

Restricted use cash

Depreciation fund

Donor-restricted long-term investments

Less assets whose use is limited required for current liabilities

Deferred financing costs - net

Interest rate cap

Property, plant and equipment - net

Total assets

Elimination Consolidated

Hospital Foundation Institute Total Entries Balances

$ 13,680,444 $ 7,855,311 $ 1,180,354 $ 22,716,109 $ - $ 22,716,109

5,011,105 - - 5,011,105 - 5,011,105

663,938 - - 663,938 - 663,938

8,019,667 - - 8,019,667 - 8,019,667

1,338,010 - 64,426 1,402,436 - 1,402,436

474,384 - - 474,384 - 474,384

- 218,594 839,339 1,057,933 (1,057,933) -

1,616,561 7,635 1,008,228 2,632,424 - 2,632,424

30,804,109 8,081,540 3,092,347 41,977,996 (1,057,933 ) 40,920,063

- 83,556,588 - 83,556,588 - 83,556,588

21,283,333 - - 21,283,333 - 21,283,333

2,584,062 - - 2,584,062 - 2,584,062

199,938 - - 199,938 - 199,938

31,776 - - 31,776 - 31,776

2,577,276 - - 2,577,276 - 2,577,276

26,676,385 83,556,588 - 110,232,973 - 110,232,973

(663,938) - - (663,938) - (663,938 )

26,012,447 83,556,588 - 109,569,035 - 109,569,035

- - 101,105 101,105 - 101,105

- - 23,815 23,815 - 23,815

24,088,567 - 10,313,229 34,401,796 - 34,401,796

$ 80,905,123 $ 91,638,128 $ 13,530,496 $ 186,073,747 $ (1,057,933 ) $ 185,015,814

The acconlpan) In notes are an integral part of these consolidated financial statements

-40-

THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statements of Financial PositionAs of December 31, 2012

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts payable

Accrued expenses

Current portion of long -term debt

Estimated self-insurance liabilities

Estimated amounts due to third-party payors - net

Refundable advances

Accrued retirement benefits

Due to affiliated organizations

Total current liabilities

Long-terns debt , net of current portion

Estimated self-insurance liabilities, net of current portion

Accrued retirement benefits

Total liabilities

NET ASSETS

Unrestricted

Temporarily restricted

permanently restricted

Total net assets

Total liabilities and net assets

Elimination Consolidated

Hospital Foundation Institute Total Entries Balances

S 2,732,440 S 26,481 S 729,058 S 3,487,979 S - S 3,487,979

2,326,711 - 437,404 2,764,115 - 2,764,115

222,407 - 347,461 569,868 - 569,868

464,000 - - 464,000 - 464,000

2,815,850 - - 2,815,850 - 2,815,850

- - 1,543,357 1,543,357 - 1,543,357

127,730 - - 127,730 - 127,730

1,057,933 - - 1,057,933 (1,057,933 ) -

9,747,071 26,481 3,057,280 12,830,832 (1,057,933 ) 11,772,899

1,106,267 - 5,906,833 7,013,100 - 7,013,100

2,403,919 - - 2,403,919 - 2,403,919

47,766,893 - - 47,766,893 - 47,766,893

61,024,150 26,481 8,964,113 70,014,744 (1,057,933 ) 68,956,811

17,060,218 91,611,647 4,566,383 113,238,248 - 113,238,248

2,033,170 - - 2,033,170 - 2,033,170

787,585 - - 787,585 - 787,585

19,880,973 91,611,647 4,566,383 116,059,003 - 116,059,003

S 80,905,123 S 91,638,128 S 13,530,496 S 186,073,747 S (1,057,933 ) S 185,015,814

The acco lpan) In notes are an integral part of these consolida ted finan cial statements

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THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statement of OperationsFor the year ended December 31, 2013

Elimination Consolidated

Hospital Foundation Institute Total Entries Balances

UNRESTRICTED NET ASSETS

REVENUES

Net patient service revenue S 63.32.678 S - S - S 63.32.678 S - S 63.32.678

Giantievenue - - 12.775.478 12.775.478 (4,279,772) 8.495.706

Otheiievenue 7.915.787 - 115.1;5 8.0;0.922 (2.512.;24) 5.518.598

Medicaie technology stimulus revenue 1.723.232 1.723.232 1.723.232

Net assets released from iestiictions - operations 262.311 - - 262.311 - 262.311

Total revenues 73.2;4.008 - 12.890.613 86.124.621 (6.792.096 ) 79,332,525

EXPENSES

Salaiies and wages 40.727.068 - 5.196.595 45.923.66; - 45.923.66;

Supplies and expenses 14213.544 6.473.475 6.00;.622 26.690.641 (6.792.096) 19.898.545

Employee benefits 14.941.122 - 1.606275 16.547.397 - 16.547.397

Depieciation and amortization 3.935.074 - 1.353.585 5,288,659 - 5.288.659

Piovision foi bad debts 268.465 - - 268.465 - 268.465

Inteiest 73.511 - 119.;4; 192.854 - 192.854

Total expenses 74.158.784 6.473.475 14279.420 94.911.679 (6.792.096 ) 88.119.58;

Loss fiom operations (924.776 ) (6.473.475 ) (1.388.807 ) (8.787.058 ) - (8.787.058 )

NONOPERATING GAINS AND (LOSSES) - NET

Contiibutions 252.421 580.504 5,245 8;8.170 - 8;8.170

Change in faii value of interest rate cap - - 15.340 15.340 - 15.340

Uniestiicted income on investments 505.395 1.964.425 - 2.469.820 - 2.469.820

Realized gains (losses) on investments - net 844.65; 4.984.715 - 5.829.368 - 5.829.368

Change in uniealized gains and losses on trading sectuities 2,241,837 8.489.422 - 10.731.259 - 10.731 259

Nonopeiating income - net 3.844.306 16.019.066 20.585 19.883.957 - 19.883.957

Excess of revenue (deficiency in) and gains over

expenses and losses 2.919.5;0 9.545.591 (1.;68 222) 11.096.899 - 11.096.899

OTHER CHANGES IN UNRESTRICTED NET ASSETS

Net assets released fiom lestilctlons - capital acquisition 149.135 - 550.989 700.124 - 700.124

Othei accLied ietuementbenefitaddustment 17.456.731 - - 17.456.731 - 17.456.731

Tiansfeis fiom (to) affiliates - (799.960 ) 799.960 - - -

Inciease (decrease) in uniestiicted net assets S 20.525.396 S 8.745.631 S (17 273 ) S 29,253,754 S - S 29.253.754

The acconlpan17ng notes are an integral part of these consolidated financial statements

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THE WINIFRED MASTERSON BURKE REHABILITATION HOSPITAL AND SUBSIDIARIESConsolidating Statement of OperationsFor the year ended December 31, 2012

UNRESTRICTED NET ASSETS

REVENUES

Net patient service revenue

Giantlevenue

Other tevenue

Net assets released fiom lestuctlons - operations

Total revenues

EXPENSES

Salaues and wages

Supplies and expenses

Employee benefits

Dept eclatlon and tint tl zatlon

Piovision for had debts

Intel est

Total expenses

Loss fi om opel atlons

NONOPERATING GAINS AND (LOSSES) - NET

Conti ibutions

Change in fait value of interest late cap

Untestl lcted income on investments

Realized gains ( losses) on investments - net

Change in ulneallzed gains and losses on tradin g Securities

Nonopelating income ( loss) - net

Excess of revenue ( deficiency in) and gains over

expenses and losses

OTHER CHANGES IN UNRESTRICTED NET ASSETS

Net assets released fiom lestuctlons - capital acquisition

Other accrued retirement benefit adjustment

Ti ansfels from (to ) affiliates

Incl ease ( dccl ease ) in ulnestl lcted net assets

Elimination Consolidated

Hospital Foundation Institute Total Entries Balances

$ 64.289.031 $ - $ - $ 64.289.031 $ - $ 64.289.031

- - 11.641.589 11.641.589 (4.097.873) 7.543.716

8.190.142 - 86.677 8.276.819 (2.624.414) 5.652.405

169.653 - - 169.653 - 169.653

72.648.826 - 11.728.266 84.377.092 (6.722.287 ) 77.654.805

39.937.483 - 4.805.243 44.742.726 - 44.742.726

12.916.610 5.622.003 5.383.185 23.921.798 (6.722.287) 17.199.511

16.978.766 - 1.433.209 18.411.975 - 18.411.975

3.893.886 - 1.339.343 5.233.229 - 5.233.229

221.967 - - 221.967 - 221.967

86.283 - 129.418 215.701 - 215.701

74.034.995 5.622.003 13.090.398 92.747.396 (6.722.287 ) 86.025.109

(1.386.169 ) (5.622.003 ) (1.362.132 ) (8.370.304 ) - (8.370.304 )

96.752 461.883 5.625 564.260 - 564.260

- - (62.839) (62.839) - (62.839)

598.281 1.580.068 - 2.178.349 - 2.178.349

896.527 5.638.722 - 6.535.249 - 6.535.249

709.145 1.940.664 - 2.649.809 - 2.649.809

2.300.705 9.621.337 (57.214 ) 11.864.828 - 11.864.828

914.536 3.999.334 (1.419.346) 3.494.524 - 3.494.524

173.047 - 221.517 394.564 - 394.564

2.661.378 - - 2.661.378 - 2.661.378

- (420.415 ) 420.415 - - -

$ 3.748.961 $ 3.578.919 $ (777.414 ) $ 6.550.466 $ - $ 6.550.466

The acconipan17ng notes are an integral part of these consolidated financial statements

- 43 -