January 2009 Business Magazine

Page 1


Eggs ’n’ Issues Eggs ’n’ Issues Where business leaders meet.

Where business leaders meet.

WEDNESDAY, JANUARY 21 MAJOR COLLABORATION: Penn State’s New Interdisciplinary Business with Engineering Studies Degree

TUESDAY, DECEMBER 16

TUESDAY, Special Guests:DECEMBER Drs. Ralph Ford16 & Diane Parente Penn State Erie, The Behrend College WHERE THE THE TRACK TRACK AHEAD AHEAD IS IS LEADING LEADING WHERE

Click here to register. Special Guest: Guest: Lorenzo Lorenzo Simonelli Simonelli Special President and and CEO, CEO, GE GE Transportation Transportation President

TUESDAY, FEBRUARY 24 Click here here to to register register Click

AN INSURER’S VIEW: Opportunities and Challenges for the Year Ahead

WEDNESDAY, JANUARY JANUARY 21 21 WEDNESDAY, • General overview of the Insurance industry - Property, Casualty & Life • Economic concerns in the United States

MAJOR COLLABORATION: Penn State’s State’s New New • EconomicCOLLABORATION: scan of ERIE’s operating territories MAJOR Penn • Strengths of Erie Insurance Group and why they will succeed in this environment Interdisciplinary Business Business and and Engineering Engineering Studies Degree Interdisciplinary Degree Special Terrence Cavanaugh, president and CEO SpecialGuest: Guests: Drs. Ralph Ralph Ford & & Diane Diane Parente Special Guests: Drs. Ford Parente Erie Insurance Group Penn State Erie, Erie, The Behrend Behrend College College Penn State The Click Clickhere hereto toregister. register

LOCATION:

Manufacturer & Business Association Conference Center 2171 West 38th Street at Pittsburgh Avenue, Erie

REGISTRATION: 7:45 a.m. PRICE:

Members: $30 (per briefing) Nonmembers: $60 (per briefing)

For more information, or to register by phone, call Tracy Shepard at 814/833-3200 or 800/815-2660.


BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXII, NUMBER 1

Saint Mary’s Home of Erie Caring across the Centuries pg.10 Nursing facility celebrates 125 years of caring for the seniors of Northwest Pennsylvania

JANUARY 2009


!! " !

" ! "

" ' $ " '

% ! " ! # $

" !"! ' "

" "! " '

' # !

' # " !" !! "!

' # ' ! "# !

! % " " % ! " % !!

" "! "

! " $ '

# " $ %

% ' " !"!

")! $ "

")! % ' ! !"'

' # ')! "

"# ! #!" ( " $

' #

" "

% ! ' !

$ ! " highmarkbcbs.com.

" #" ! ' # $ !" " "

!"' ' #

! ! ! " " $

ÂŽ

# " ' " $ ' # " & ! ! ' # " " # ' " " % " ! $ ! $

HMK1-B2B-08-04469-F.indd 1

4/8/08 11:55:25 AM


10

JANUARY 2009

EDITORIAL >

FEATURES >

7 / Health Matters

3 / Spotlight

How stress management can benefit your workers and your bottom line.

Dolores Sarafinski, Ph.D., director of the Hooked on Books! program in Erie, explains why employers need to be “hooked on books” and how it can better prepare students today for the work force of tomorrow.

ROSE GANTNER, EdD

9 / Legal Brief Why now is not the time to ignore the perils of a non-existent or poorly implemented ESI (electronically stored information) policy. PATRICK J. MONDI

23 / Financial Adviser Helpful tips for nonprofits navigating the new 990 Form. VINCENT F. HALUPCZYNSKI, CPA

Save the Date! >

3

15 / Recruitment & Retention Association Training Director Dan Monaghan talks about the importance of investing in people as a massive worker shortage looms around the corner.

10 / Saint Mary’s Home of Erie Administrators kick off the yearlong 125th anniversary celebration of Saint Mary’s Home of Erie and share how this facility has been caring for the seniors of Northwest Pennsylvania across the centuries.

Join us for the next Eggs ’n’ Issues briefing at 8 a.m. January 21 at the Manufacturer & Business Association Conference Center in Erie to learn more about Penn State Erie, the Behrend College’s new Interdisciplinary Business with Engineering Studies Degree.

BMUA SG IANZEI SN SE

Manufacturer

& Business Assoc

NUMBER 1

JANUA RY 2009

Home of Erie Saint Mary’Censturie s es 125 years of caring Nursing facility celebrat st Pennsylvania Northwe for the seniors of

4 / Business Buzz 14 / HR Connection

VOLUME XXII,

iation

Caring across the

DEPARTMENTS >

17

17 / On The Hill 18 / Legal Q&A 24 / People Buzz

pg.10

22

Receive the digital edition of the Business Magazine each month! Register today at www.mbausa.org!

January 2009 > www.mbausa.org > 1


MAG

MAGAZINE

a dva

10

advancing mental wellness

AZIN

E

n ci n g

WINTE R 2008

m en ta

l w el ln

es s

Expe for M rt Tips anag in

STR

E S Sg

Mim Spea i Waldm Seas ks UP A an Diso onal Aff bout rder ectiv e

UP Magazine is part of an ongoing effort by Stairways Behavioral Health to educate as many people as possible about: r NFOUBM JMMOFTT XIBU JU JT IPX ZPV DBO SFDPWFS GSPN JU XIZ XF TIPVME iUBML BCPVU JUu r NFOUBM IFBMUI IPX UP BDIJFWF BOE NBJOUBJO NFOUBM XFMMOFTT

K ID Help S & T H E in Timing ThemE C O N O MY es of C Crisisope

Dep

in th r e s s i o n e A Gu Workpla ide fo c r Em e : ploye

rs

1

CONTACT US TO RECEIVE UP MAGAZINE FREE & QUARTERLY FOR ONE YE AR

Stairways behavioral health

ĂŚ7ESTĂŚ THĂŚ3TREETĂŚsĂŚ%RIE ĂŚ0!ĂŚsĂŚ ĂŚORĂŚINFO 3TAIRWAYS"( ORG www.StairwaysBH.org

When records management is overwhelming‌ BRM can help. Business Records Management provides a variety of solutions to manage your documents so you don’t have to. •

Secure Document Management and Storage

•

NAID AAA-Certified Document Destruction

•

Confidential Email Archiving

Call BRM today, and mention Business Magazine for a free assessment of your office.

BUSINESS RECORDS MANAGEMENT


SPOTLIGHT > by Karen Torres Dolores Sarafinski, Ph.D., is a professor emerita of English at Gannon University and founder and executive director of the inspirational reading program Hooked on Books!, which currently reaches 550 children in the City of Erie, and the family literacy program Hooked on Books! Hooked on Families! Sarafinski recently sat down with the Business Magazine to discuss the importance of these programs to a well-trained work force.

Why should employers be “hooked on books”? The altruistic reason would be that we all want to benefit children living in the inner city. We all know what a benefit developed reading skills provide; they help children become more successful in school and eventually in business. Developed reading skills also bring joy to the lives of children by developing their imagination through books. When their reading skills have been developed, children become more comfortable with reading and experience great excitement from books. Please describe the program. When we started our program (Hooked on Books!) in 1991, we read one-to-one (one adult with one child) at St. Mary’s school. Very soon we realized that something magical was happening. One hundred excited children from kindergarten through third grade were, by the second week of the program, greeting their readers by chanting, ‘The readers are here! The readers are here!’ This enthusiasm has continued in our program at the Neighborhood Art House, Pfeiffer-Burleigh, McKinley and St. John/Holy Rosary Elementary Schools. Why did you start the Hooked on Books! Hooked on Families! program? I knew from the first time that we read to inner-city children that we had to begin a second program for parents in the inner city. When State Senator Jane Earll heard about our plans, she helped us receive a state grant, the Pennsylvania Department of Community and Economic Development Grant. The Erie Community Foundation also provided a capacity building grant so that our program, even in its earliest stages, could benefit from the advice of an expert from the Goodling Institute at Penn State, perhaps the leading institution in the Did You Know? United States for family literacy. We designed, with the help of Dr. Barbara • According to the Are They Really Ready to Work? Van Horn, a program for inner city survey (2006), employers, each having 5,000 or parents of the children that we read more employees, reported: to in the Hooked on Books! program. 1. That reading and writing are the two basic In this program we encourage these skills they deem “very important” for those parents to increase their involvement entering the work force, regardless of in interactive literacy activities in their homes and to become more active education. in their children’s education. We also 2. Employers’ expectations for less educated teach them the techniques they can workers, those who stopped at high school adopt at home and provide them with or junior college, are the same as those for “teaching tools” they can use. You’ve said that, “reading widely and reading well can be a career investment.” Please explain. Any good reader becomes interested in many things. An employer who has hired a young individual with advanced reading skills will find that this employee is not threatened by new ideas. He or she is going to put extra energy into learning more about it and into learning the skills necessary for developing the program. I would suspect that these are the employees who have the ability, the imagination, and creativity that employers are looking for. To volunteer or make a donation to the Hooked on Books! programs, call 814/871-7422 or visit www.hoberie. org for more information.

VOL. X XII, NO. 1 JANUARY 2009

Manufacturer & Business Association Board of Governors

Dale Deist Gerald B. Eighmy Scott M. Hanaway Dan Ignasiak Mark C. Kulyk William F. Muck John B. Pellegrino Sr. Dennis Prischak Timothy G. Shuttleworth Sue Sutto Philip Tredway

Editor in Chief Ralph Pontillo rpontillo@mbausa.org Executive Editor John Krahe jkrahe@mbausa.org Managing Editor & Karen Torres Senior Writer ktorres@mbausa.org Contributing Vincent F. Halupczynski, CPA Writers Rose Gantner, EdD Patrick J. Mondi Advertising Sales Lori Maus Joint 814/833-3200 or 800/815-2660 ljoint@mbausa.org Photography Bruce Bennett Photography Design, Production Printing Concepts Inc. & Printing printcon@erie.net

college-educated employees.

3. Reading comprehension claimed the top spot to be valued for all potential employees, earning the most employer ratings of “very important.” • The majority of adults at the “Below-Basic” reading level (70 percent) expressed their belief that low reading skills had hindered their job options, according to the U.S. Department of Education, National Center for Education Statistics. • “The importance of reading comprehension to the manufacturing sector is projected to grow,” according to the 2005 Skills Gap Report, a Survey of the American Manufacturing Workforce. “Reading/writing/communication skills” ranked among the top three types of skills that employers will demand increasingly. Source: To Read or Not to Read: A Question of National Consequences, National Endowment for the Arts, November 2007

Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2008 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

January 2009 > www.mbausa.org > 3


Business Buzz ECS UNVEILS NEW WEB SITE Data and telecommunications provider Electronic Communication Services, Inc. (ECS), headquartered in Albion, Pennsylvania, recently unveiled its new Web site, www.ecsinc.us.com. The new site includes access to customer testimonials, products, market specific information, industry news, Mitel Webinars and podcasts.

DEPARTMENTS > Contact: Karen Torres

over the past four years who not only have chosen to live, work and play in the Erie area, but who have made a lasting impact on the region. Winners will be recognized the evening of Friday, April 24, 2009 at the Bayfront Convention Center.

ECS is a major provider of telecommunications equipment and data networks for a variety of customers, including hotels and motels, manufacturing facilities, schools, vendors and government agencies. Its customers are located up and down the East Coast with a focus on the tri-state area.

According to yep!, nominees can be from any number of fields, professions and backgrounds. The only requirement is that they live in the Erie area and are making a positive and lasting difference in the community — whether it be professionally, personally or both. A panel of eight judges from several different companies and organizations in the area will review the nominations and choose the winners in February.

GENERATION-E LEADERSHIP AWARD NOMINATIONS SOUGHT

The nomination form is available at www. generationeawards.com. Deadline to submit nominations is January 30, 2009.

Nominations are now being accepted for the 2009 Generation-E Leadership Awards, hosted by Young Erie Professionals (yep!). The Generation-E Leadership Awards recognize young professionals who are paving the way to the future of Erie. The awards have honored dozens of individuals

LOCAL COMPANIES LEAD THE WAY IN ‘GREEN FLIGHT’ Leading the way in the biodiesel industry, Lake Erie Biofuels, L.L.C., an Erie Management Group (EMG) company, teamed with Green Flight International

to supply leading edge biodiesel for a precedent-setting trans-continental jet flight in November 2008, from Nevada to Florida. “This transcontinental flight was distinctive in that 1,776 miles of the 2,486 total miles flown were powered on 100-percent biodiesel,” said Douglas Rodante, Green Flight International president and CEO. Michael L. Noble, president of Lake Erie Biofuels added, “Our success with Green Flight International proves it’s possible to implement alternative energy into mainstream transportation sources. This is something we can all take pride in.” The “Green Flight International” was cosponsored by global transportation solutions provider Logistics Plus, also headquartered in Erie. Noted Logistics Plus CEO Jim Berlin, “Logistics Plus is excited about being part of aviation history. We’re certain these advancements will lead the way to cleaner, more efficient energy solutions. Through this exciting partnership with Lake Erie Biofuels and Green Flight International, Logistics Plus has been able to contribute to a great cause… .”

Pirrello Enterprises, Inc. Scanning Solutions

Hold-N-Scan

The Hold-N-Scan process involves holding your records while scanning them into digital format. This process can be arranged on a monthly basis, at a pace specified by our client, in order to match a set budget. Pirrello Enterprises is aware of the challenges record managers face when trying to budget for the storage and/or conversion of their records. In an attempt to alleviate the headache of budget constraints, Pirrello Enterprises has developed Hold-N-Scan. Hold-N-Scan allows clients to convert their records to digital images over a specified period of time. This allows facilites to split the cost of converting their records into multiple budget years while the records are at Pirrello Enterprises Facility. The records are immediately removed freeing up precious office space and then are returned to you in a convenient electronic form on a monthly basis. Why throw your precious budget dollars away on off-site storage and only have a bill to show for it? Using Pirrello Enterprises you will receive digitized records for instant access plus, at the end of your contract you own your electronic records. No more storage fees ever!! Pirrello Enterprises Inc. is committed to working with each customer to devise the best fit for their budget. 4 < www.mbausa.org < January 2009

Why choose Pirrello Enterprises? Simultaneous access to information No capital investment Free basic set-up and support Hold-n-Scan with digital records on site Each CD can hold approximately 20,000 images Print fax and e-mail capabilities Eliminates the need for a permanent file area Superior customer service

Pirrello Pirrello Enterprises Inc. Enterprises Inc. Erie, PA Phone: 814/454-7984 Fax: 814/454-7986 www.pirrelloenterprises.com




Health Matters

EDITORIAL > by Rose Gantner, EdD

Coping with Stress Stress is a part of everyone’s daily life. At different times in our lives, we must all deal with stress. Work can create stress, of course, but even when the causes of stress are not necessarily work-related, the impact of stress can show up on the job. That’s what makes stress management an important issue for business owners. Approximately 50 percent of all large companies provide some sort of stress management training for their work forces. Smaller companies often enlist the aid of employee assistance programs (EAPs) to educate employees about stress management. One of the reasons for all this attention on stress is that policies that benefit worker health can also benefit the bottom line. The National Institute of Occupational Safety and Health (NIOSH) has identified organizational characteristics that are associated with both healthy, low-stress work and high levels of productivity. The characteristics are as follows: • Recognition of employees for good work performance • Opportunities for career development • An organizational culture that values the individual worker • Management actions that are consistent with organizational values How important is stress management? • Health-care expenditures are nearly 50-percent greater for workers who report high levels of stress. • Workers who must take time off from work because of stress, anxiety, or a related disorder will be off the job for an average of 20 days. • A stress management program based on a cognitive behavioral approach in the workplace may assist in the prevention of depression. • Studies have shown that from 25 to

40 percent of workers feel high levels of stress on the job. • The annual cost for absenteeism for workers with insomnia is $4,800. What can stress management classes teach employees?

• Mental rehearsal. Practicing a presentation in advance of actually doing it can reduce your stress. • Remember S-P-T-A – stop, pause, think, and act. This is better than simply reacting to situations.

• The nature and sources of stress; differences between situational stress, acute stress, and chronic stress

• Concern is preferable to worry. Having a plan of action can reduce anxiety; stay open to viable alternative options.

• The effects of stress on health, both mind and body

• Try to remain calm, cool, collected, and in control.

• Personal coping skills to reduce stress, such as positive thoughts, time management, and relaxation exercises What can an employer do to reduce stress among employees? • Ensure that the workload is in line with workers' capabilities and resources. • Design jobs to provide meaning, stimulation, and opportunities for workers to use their skills.

2. Life behaviors that help reduce stress: • Eat nutritious food; preferably five fruits and vegetables per day. • Exercise regularly, preferably 60-90 minutes, five times per week. • Get enough sleep, preferably 8 hours per night. • Manage your time well; categorize priorities as “critical,” “important,” and “nice to do”. • Stay organized and avoid clutter.

• Clearly define workers' roles and responsibilities.

• Develop a support system of family, friends, and colleagues.

• Give workers opportunities to participate in decisions and actions affecting their jobs.

• Give yourself time to unwind and regroup.

• Improve communications and reduce uncertainty about career development and future employment prospects. • Provide opportunities for social interaction among workers. • Establish work schedules that are compatible with demands and responsibilities outside the job. What can an employee do to reduce stress? 1. People can employ certain psychological techniques to deal with stress. These include:

Rose Gantner, EdD, is senior director, Health Promotion at UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services – which includes UPMC Health Plan, UPMC Work Partners, EAP Solutions, UPMC for You (Medical Assistance) – and which offer a full range of insurance programs and products.

• Visual imagery. Imagining peaceful places such as the beach or the mountains can help to make you calm. January 2009 > www.mbausa.org > 7



Legal Brief

EDITORIAL > by Patrick J. Mondi

Electronically Stored Information and E-Discovery: Understanding Through Clichés The 2007-2008 New England Patriots. Any recent Seann William Scott movie. Ralph Nader. What do they have in common? All three had a lot of hype but in the end were a letdown. In contrast, electronic discovery (ediscovery) lives up to the massive hype surrounding it. But what is it, and how can an organization get its arms around it? Like a bad motivational seminar, this article uses clichés to illustrate the concept and the steps that an organization can take to mitigate the threat that electronically stored information (ESI) poses. Cliché 1: They Are Who We Thought They Were. This legendary Dennis Green cliché describes electronic discovery. ESI is what you think it is: e-mails, instant messages, word processing documents and any communication or record that is produced “electronically.” Discovery is the stage in civil litigation in which a party can request documents and other evidence to use at trial (responsive documents). As such, e-discovery is discovery that takes the form of ESI. Cliché 2: The Will to Succeed is Nothing Without the Will to Prepare. This overused cliché has no apparent attribution. Regardless, unmanaged ESI poses numerous risks to an organization. The general rule is that a party must produce all relevant information within the scope of a discovery request. Before ESI, this was fairly straightforward: determine the physical documents that were relevant to a discovery request, pull them out of the files, make photocopies, and voilà, discovery obligations were fulfilled. Meeting this burden in the era of e-discovery is dramatically more

complicated, raising issues relating to locating ESI, as well as determining what ESI should be provided. Fortunately, an organization can help to meet this burden by implementing a reasonable ESI policy. For example, the Internal Revenue Service generally requires an organization to maintain seven years worth of certain taxrelated data. It follows that it may be reasonable for a company to delete such data that is over seven years old. Of course, establishing deletion schedules for e-mail and other uncategorized ESI is a little more nebulous. Courts will continue to define the contours of this reasonableness standard, but as a general rule, arbitrary and capricious data-deletion time frames will not withstand court scrutiny and could result in court sanctions or unnecessarily providing incriminating responsive documents to an opposing party. Moreover, not having an understanding where data resides (servers, personal computers, PDAs) can lead to expensive courtordered searches. Accordingly, an organization should implement an ESI policy that sets forth the types of ESI that it controls, the locations of ESI, and the time frame that such data is maintained. The policy also should include a litigation hold process, whereby when a litigation threat emerges, procedures are put in place to ensure responsive ESI is not deleted. Cliché 3: Always Follow-Through. In the clichéd words of every basketball coach on the planet, follow through is key. An ESI policy that is not consistently followed is going to draw scrutiny and result in increased litigation costs and risk exposure to an organization. The nightmare scenario

is where a policy calls for the deletion of all e-mails older than five years; but an IT staffer has been making rogue backup DVDs of older e-mails “just in case.” It comes out in discovery that these backup DVDs exist, and the DVDs contain responsive evidence. To avoid this, an organization should conduct regular audits to ensure that its ESI policy is being adhered to. Conclusion (and Cliché 4): Just Do It. Now is not the time to ignore the perils of a non-existent or poorly implemented ESI policy. The up-front costs pale in comparison to the backend risk. Recently, in California, a business was sanctioned by a court to the tune of $8.5 million for e-discovery abuses. So, just do it: 1) understand what ESI exists in your organization; 2) establish an ESI policy; and 3) adhere to the policy and be ready to document that it is being followed. MacDonald, Illig, Jones & Britton LLP attorneys are familiar with IT issues and the current state of the law, and can advise on e-discovery and ESI with an eye toward reducing organizational risk and minimizing legal expenses.

Patrick J. Mondi is an associate at the law firm of MacDonald, Illig, Jones & Britton LLP. A graduate of Purdue University and Chicago-Kent College of Law, he practices in the areas of business transactions, commercial litigation and real estate.

January 2009 > www.mbausa.org > 9


The Saint Mary’s community, shown here with President and CEO Sister Phyllis McCracken, SSJ (front row, center), residents, administration, Trustee Sister Joyce Lowery, SSJ (second row, at left), staff and Board Chairman William Flaherty Jr. (back row, second from left), is celebrating its 125th anniversary, since being founded by the Sisters of St. Joseph of Northwestern Pennsylvania in 1884.

Recently, Saint Mary’s has started a new chapter in its history of care, embarking on a $21 million project – the Nursing Facility and Renovation Project – that will transform the skilled nursing facility known as Saint Mary’s East. It is a project, begun in June 2008, which holds special meaning for Saint Mary’s residents and employees and the Sisters of St. Joseph. For 125 years, Saint Mary’s Home of Erie has been caring for the seniors of Northwest Pennsylvania, each day providing the quality service and compassion of a faith-based Continuing Care Retirement Community. “We say at Saint Mary’s that our mission is ‘loving to care’,” explains President and CEO Sister Phyllis McCracken, SSJ. “You can go to many places and care for people, but at Saint Mary’s we expect you to have a passion for it.” This devotion to caregiving has been the hallmark of Saint Mary’s since the Sisters of St. Joseph of Northwestern Pennsylvania first opened the doors of Saint Mary’s Home of Erie in 1884 to the ailing widows and orphans in the section of Erie then referred to as Marvintown. When these dedicated Sisters welcomed these first residents into Saint Mary’s, they chartered a new course in care that would evolve over the years. During the 1950s, the facility added a geriatric hospital and over time transformed into the nursing facility that operates today at East 26th and Reed Streets. It was here in 1991 that Saint Mary’s East became the first facility in Erie to establish a freestanding dementia-nursing unit, known as the Gallagher Center, and eventually one of the few facilities in Northwest Pennsylvania to offer Adult Day Services. By 2001, to meet the growing demand for nursing care as well as independent and residential living services, Saint Mary’s opened the west Erie County Nursing Facility, Saint Mary’s at Asbury Ridge, at 4855 West Ridge Road in Millcreek Township. That facility has since expanded to include the independent living homes known as The Carriage Homes at Asbury Ridge. 10 < www.mbausa.org < January 2009

“I think we have to recognize that we’re standing on the shoulders of giants — those first Sisters who had the vision to come and make something that would last and care for senior members of society through three centuries,” says Sister McCracken, looking back over the facility’s rich history. “I’m sure they would never have envisioned how it would grow and the number of lives it would touch. I guess I look back and see the mission of the Sisters of St. Joseph, of unity and reconciliation and how it is lived out three centuries later at Saint Mary’s with our mission of ‘loving to care’ and building community. It makes one pause and give thanks for all that has gone before us as we forge into the future.” A New Saint Mary’s East

Upon entering the East facility you can see the excitement of the residents watching as construction crews work on the major renovation project under way. This extreme makeover will enable Saint Mary’s East to be outfitted with the most modern amenities in nursing care services, comparable to those currently available at Saint Mary’s location on West 26th Street located adjacent to the independent living Carriage Homes at Asbury Ridge. “In 2001, when we began Saint Mary’s at Asbury Ridge on the west side of town, the Board of Trustees made a decision that we were going to operate two facilities and that we would stay on the east side of town as well, because this is where our roots are, this is where we began 125 years ago,” explains Sister McCracken. “We consider ourselves an anchor on the east side of Erie, especially at this 26th Street corner. So in the past years, when we began considering this project, we had to re-dedicate ourselves once more to the decision of not pulling up our anchor on the east side.


By fall 2009, Saint Mary’s East will unveil a totally transformed campus to match the services provided inside. Construction on the $21 million project began in June 2008.

“In doing so,” she continues, “our vision is that this project is our gift, for our 125th anniversary, to the Erie community. It’s our way of saying, ‘thank you,’ and to enliven our mission once more so that we can more fully care for those seniors who are placed in our care.” When the multi-phase renovation is finally completed in fall 2009, this enhanced facility will feature a much more modern and inviting Saint Mary’s East. Among these features are a refurbished skilled nursing facility, which includes a 54-room addition (100 beds total); a new therapy center and hair care area; a new nursing dining facility; activity spaces; an enclosed courtyard; the addition of air conditioning in the beautifully stained-glassed Saint Joseph Chapel; additional parking; and a new employee entrance and locker rooms for Saint Mary’s staff. With these new amenities, residents will enjoy a totally upgraded living experience that goes hand-in-hand with a new movement in nursing and long-term care called “culture change.” This movement is working to radically transform nursing home care, and help facilities transition from “institutions” to more of a “residential” type setting. Such creature comforts will be visible as soon as residents and guests walk in the door, making the entire nursing facility experience more welcoming. For example, following Sunday Mass or monthly ecumenical services, residents, their families and guests can treat themselves to a coffee bar and the new furniture of the entrance lobby, which includes a working fireplace. “Right now, after people have had our services for a while, they say it feels like family and it feels like home,” says Sister McCracken. With the renovations, “I want them to physically feel like it’s home.” All nursing residents will now be able to unwind in the comforts of their own rooms versus shared space. Each room will have a private handicapped-accessible bathroom equipped with a European shower. Both rooms and hallways will be outfitted with health-care grade carpeting that is better for cleaning, preventing infection as well as noise control. On each floor, Saint Mary’s will have an activity space and spa, complete with whirlpool tub. Also part of the renovation plans, residents will be treated to a totally new dining experience. There will be a “country kitchen” on each of the two nursing units. Food, both hot and cold menu items, will be prepared in the center’s main kitchen and brought to glass-enclosed areas, so that Saint Mary’s residents are active participants in the community in which they live, shown here at the Erie Zoo.

residents can see the food being prepared, to be served “restaurant style” rather than on standard trays. “The nice thing about this,” notes Sister McCracken, “is that people will be able to see the food and smell the food, so they can choose what they want.” Saint Mary’s at Asbury Ridge Administrator Audrey Urban says there are many benefits to this new dining experience, including improved health and wellness by turning mealtime into a more stimulating experience. “We’ve been doing this on our Nursing units at Asbury Ridge,” she says, “and what we found is that there is more socialization, better appetites, and people are gaining some weight.” Indeed, the entire purpose of the construction is to provide a better quality of life and care to the residents of Saint Mary’s. “That’s our main goal,” adds Sister McCracken, “we’re always looking at new ways to provide improved quality of care and quality of life.” A Multitude of Services

At Saint Mary’s, residents enjoy comfort and convenience but also the luxury of a full continuum of care to meet the varying level of a resident’s individual needs. Saint Mary’s is one of the few facilities in the Erie region to provide Adult Day Services; Independent, Residential Living; Personal Care Services; Nursing Care; Rehabilitative Services; and Alzheimer’s Nursing Care, Alzheimer’s Personal Care and Respite Care. According to administrators, not only are staff members trained to care for these residents but also each nursing manager is certified or in the

ie Saint Mary’s Home o! Er

Erie by the Sisters of St. Joseph of Founded: September 21, 1884 in Northwestern Pennsylvania. of living options for seniors at its east Locations: Saint Mary’s offers an array Mary’s East, 607 East 26th Street in and west side locations, including: Saint Carriage Homes at Asbury Ridge, The Erie; Saint Mary’s at Asbury Ridge and ship. 4855 West Ridge Road in Millcreek Town 219 Nursing residents, 295 Personal for ed Residents: The facilities are licens Adult Day Service clients. The Carriage Care/Residential Living residents and 49 independent living homes. Homes at Asbury Ridge will include 26 Employees: 460 nt, Residential Living; Personal Care Services: Adult Day Services; Independe tive Services; Alzheimer’s Nursing Care, Services; Nursing Facility Care; Rehabilita Care. te Respi Alzheimer’s Personal Care and a Catholic faith-based Continuing Care Religious Affiliation: Saint Mary’s is welcomes residents of all faiths. Both Retirement Community. The community services. Ecumenical services are held facilities house chapels for religious monthly. Web site: www.stmaryshome.org 621; Saint Mary’s at Asbury Ridge and Phone: Saint Mary’s East – 814/459-0 36-5300. 814/8 – Ridge ry The Carriage Homes at Asbu

January 2009 > www.mbausa.org > 11


Residents at Saint Mary’s enjoy an active lifestyle with regular outings to area sights and attractions. At right, the facility is a longtime sponsor of the annual Alzheimer Association’s charity event, the Memory Walk.

process of certification in gerontology through the American Nurses Credentialing Center (ANCC). This provides them with knowledge and critical understanding of the processes of adult development and aging. “We’re well known for the care of dementia and related diseases,” says Sister McCracken. “We’re also fortunate to have Geriatrician Dr. Dorothy Candib, MD, as medical director of the Gallagher Center and Saint Mary’s East, because she’s given us a lot of direction in the care of our dementia residents.” Equally notable is the distinction that Saint Mary’s has earned for its wound care and therapy services. The facility provides rehabilitation and recovery for both long-term residents and short-term admissions — those people who come to Saint Mary’s for short-term stays after a health-care challenge to gain the ability to return to their homes. The facility will be outfitted with a new therapy suite, which will offer a larger, more modern unit. Such brick-and-mortar renovations are a perfect complement, say administrators, to the many technological resources that Saint Mary’s currently has in place for the care of its residents. Currently, the facility utilizes a system called Equip for Quality to measure itself against other facilities in areas such as restraint use, pressure ulcers, pain management and falls. In fact, the Asbury Ridge facility was selected as a Quality Insights training site for fall prevention because of its standing in assessing a resident’s mobility needs and their progress. Saint Mary’s also has invested heavily in a clinical and financial program known as Keane, an integrated system of browser-based financial and clinical software designed for long-term care, and Care Tracker to chart the point of care of each resident – from how far they’ve walked, or whether they’ve dressed themselves, to how much they’ve eaten each meal. Notes Sister McCracken, “We’ve been a leader in computer technology in our area. This allows our nurse aides to go up to the computer kiosk and enter care information on each resident, which enables us to document more fully for other caregivers else to measure how the resident is doing.” This means for a family member who wants to check in on a resident, they have real-time, accurate data on the health and welfare of their loved one. “We can check on anyone at any time,” notes Saint Mary’s Administrator Sister Mary Fromknect, SSJ. “We can get right into their record and know immediately how they’re doing.”

intergenerational program at both facilities that works with local schools and student volunteers. As a major long-term care provider and employer in the region, Saint Mary’s takes great pride in serving as an educational setting and clinical site for future health-care professionals. Students from Lake Erie College of Osteopathic Medicine (LECOM) participate in several programs at the facility, such as Spirituality, Medicine and Ethics, and Nursing students from Gannon University, Edinboro University of Pennsylvania, Mercyhurst College, Penn State Erie, The Behrend College and Erie Business Center also come to Saint Mary’s for clinical and educational experiences. Administrators say these students quickly learn that Saint Mary’s is a close community. Not only do employees and volunteers become friends with the residents, they become part of a larger family. “We see these associates, students, family and friends as part of our unit of care,” adds Sister McCracken. “At Saint Mary’s, that’s what we mean by community.” 125 Years and Counting

To mark the community’s 125th anniversary, Saint Mary’s plans to hold special events for residents and staff over the year. But on September 20, 2009, the day before the official founding date, Saint Mary’s is planning to host a major celebration at the Bayfront Convention Center in Erie. According to Marketing Director Anthony Allegretto, The Most Reverend Donald W. Trautman, Bishop of Erie, will preside over a special Liturgy and American Association of Homes and Services for the Aging President and CEO Larry Minnix will be the keynote speaker at the luncheon that follows. At Saint Mary’s Home of Erie this 125th anniversary is more than a celebration, it’s a milestone marker of what the Sisters of St. Joseph started so many years ago and continue to sponsor today. It is the culmination and continuation of caring across the centuries. For more information, visit Saint Mary’s Home of Erie online at www.stmaryshome.org.

An Active Community

Today’s seniors are living longer than ever before, and with the influx of the baby boomer generation are expecting to have more amenities and lead a more active lifestyle as they age. To help residents remain active longer, Saint Mary’s offers an abundance of social activities both on and off-site. Residents are encouraged to take part in any number of internal activities as well as day trips out in the community for shopping outings, movies and concerts. Saint Mary’s also hosts townhall meetings on subjects directly related to seniors, such as Medicare and dementia, has participated in the Alzheimer’s Association Memory Walk, and has an

12 < www.mbausa.org < January 2009

Saint Mary’s is proud to be an educational setting for future health-care professionals.


!"#$%&'(')*(+% ,"$+-%*.% )/('0*'01 2""-%3/*'0% 4"#%/(56% )/"*)6.1

;6(-4%3"%<(=6% 3/6%)/('06>

7/('06%8"$%3/6%96336$1%%2"%:"$3/,6.31

Q%')#+8%$)F+#',$+"5),65) $6:')H"I)GE6,'()+5)E+J'4) Q%')#+8%$)965:),65)9')H"I#) ,";G6((4)

@$)!"#$%&'($)A67+58()B65:C)&'D#')E+7+58)6)($#"58C)+5F'G'5F'5$C) --2.H'6#)$#6F+$+"5)6()E",6E)965:'#();6:+58)E",6E)F',+(+"5(C) ,";;+$$'F)$")$%'),";;I5+$+'()&')('#7'C)65F)F'F+,6$'F)$")$%') (6$+(J6,$+"5)65F)(I,,'(()"J)"I#)J#+'5F()65F)5'+8%9"#(4

R%'5)H"ID#')#'6FH)$")$6:') H"I#)S#($)($'G)+5)$%')#+8%$) F+#',$+"5C)(+;GEH)7+(+$)"5') "J)"I#),"57'5+'5$)E",6E) "JS,'()J"#)6)TI+,:C)'6(HC) 65F)&'E,";')(&+$,%4

K7'#H)F6HC)!"#$%&'($),65)$6:')H"I)&%'#')H"I)&65$)$")8"C)&+$%) 8#'6$)#6$'(C)('#7+,'C)65F)'LG'#$+('4)MEI(C)9'($)+5),E6(()G#"FI,$() 65F)('#7+,'()J"#)H"I)65F)H"I#)9I(+5'((C)+5,EIF+58)=NKK),%',:+58C) =NKK)"5E+5')965:+58)65F)9+EE)G6HC)65F)O2CPPP)=NKK)@Q<(4

?@%A$*6%7"#'34%+")(3*"'.%3"%.6$56%4"#%*'%A$*6B%7"$$4B%A-*'9"$"B% C(*$5*6,B%D(=6%7*34B%:"$3/%A(.3B%E'*"'%7*34B%('-%F(33.9#$01 !"#$%&'($)*+#',$)-./00.102.310/)))))&&&45"#$%&'($(67+58(965:4,";)))))<';9'#)=*>?


HR Connection MORE EMPLOYERS TURN TO TRAINING FOR SAVINGS In today’s challenging economic times, business owners are struggling to do more with less and are exploring new ways to stretch their dollars while maximizing employee productivity. According to a report composed by The American Society for Training and Development (ASTD), an organization’s investment in learning technologies pays off through cost savings and efficiency gains. A study by ASTD of 540 U.S. companies concluded that those who invested more in training realized a 37-percent higher gross profit per employee. BETTER-PREPARED APPLICANTS NEEDED, EMPLOYERS SAY Employer and business groups, complaining that entry-level job applicants don’t have the skills for

*NSURANCE 1OSTINGS FROM 1ATTY Trying

to trim health-care costs in 2009? Con sider a health reimbursement arrangement. The flexib le spending account (FSA) is typically employee money, payroll deducted tax free throughout the year to be used as a qualified med ical expense occurs. The health reimbursement account (HRA ) is all employer money to be used by employees to cover qualified medical expenses. The health savings account (HSA) can be funded by the employer, employee or another person on behalf of the emp loyee. When used for qualified medical expenses, there are no tax implications. This account must be coupled with a qual ified high deductible health plan and is governed by federal stan dards.

successful employment, have formed a coalition to urge lawmakers to do something about the situation, according to HR.BLR.com. The group, known as The Texas Coalition for a Competitive Workforce, plans to ask lawmakers to impose serious consequences on school districts and schools that don’t meet

accountability standards or experience a decline in their ratings; raise curriculum standards to reflect the knowledge and skills students need to be ready for college or career training; and base school performance ratings on the percentage of students who are either on track for college or career readiness.

Contractors & Construction Managers ~ Since 1906

14 < www.mbausa.org < January 2009

Patty Smith is the director of Emplo yee Benefit Services at the Manufactur er & Business Associa tion.


DEPARTMENTS > Contact: John Onorato

Investment in People Pays Off The lack of a fully engaged work force can destroy a business from the inside out. Regardless of the product or service you provide, people drive results. The landscape is littered with closed businesses that at one time had “state of the art” products and “cutting edge” services. And with the baby boomer generation starting to retire, we are faced with a potential worker shortage the likes of which we haven’t seen since World War II. Officials with the Health Resources and Services Administration, for example, released projections that the nation’s nursing shortage would grow to more than 1 million nurses by the year 2020. It’s not just health care that will be pinched by a worker shortage. Talk to anyone in business today and they will tell you one of their biggest challenges is finding and keeping competent staff. Finding them is most often a function of Human Resource departments.

Keeping them falls on the shoulders of management. It’s well documented that people join an organization because of its pay, benefits and perceived opportunities, but how long they stay and how productive they are while there is a result of their relationship with their immediate supervisor. If the pool to select potential employees is drying up, it would serve all companies well to keep their employees engaged and motivated to avoid the stress and expense of turnover. How do you do that? It’s simple. Not easy, but simple. All employees want to be appreciated, they want to know what is going on in the company and they want to feel as though what they do makes a difference.

Training Courses Can Help Attract, Retain and Motivate Emplo yees

Sharpening your employees’ skills is one of the most effective investm ents you can make in your company. The Manufacturer & Business Association offers a variety of supervisory, leadership and com puter courses tailored to help employees perf orm, grow, and thrive in the work environm ent. To register for one of the upcomi ng training courses, visit www.mbausa.o rg.

Dan Monaghan is the director of Training at the Manufacturer & Business Association.

In future columns, we will outline ways to address these specific concerns and help you to hold on to that coveted employee.

You have choices. Change for the better. Go Northwest.

Jim Martin

Shirley Anderson

Jennifer Marz

President, Erie Region (814) 461-6984 jmartin@nwbcorp.com

Business Services Advisor (814) 461-6967 sanderson@nwbcorp.com

Business Services Advisor (814) 461-6968 jmarz@nwbcorp.com

20 Erie County locations to serve you in Erie, Corry, Edinboro, Fairview, Lake City, North East, Union City, and Wattsburg.

Northwest Direct 1-877-672-5678

www.northwestsavingsbank.com

Member FDIC

January 2009 > www.mbausa.org > 15



OntheHill STATE Health Care, Taxes Top List of Concerns for MBA Members The Manufacturer & Business Association (MBA) membership recently participated in the 2008 Government Affairs Department Survey. Companies were asked to provide input on legislative topics ranging from regulations to energy. Topping the list with over 85 percent of the vote was Health Care/Insurance, followed by energy costs, taxes and government regulations ranking among the most important issues facing the state’s business community. In addition, more than 92 percent of MBA members who responded to the survey felt that that enactment of a Right-to-Work law in Pennsylvania, which would protect an employees’ right-to-work without being forced to pay union dues or fees, was necessary to improve the Commonwealth’s business climate and create jobs. For more information regarding the survey or to view a complete listing of the survey’s results, please visit the Government Affairs Department online at www.mbausa.org.

FEDERAL Employee Free Choice Act; Unions Top Priority in 2009 The Manufacturer & Business Association – opposed Employee Free Choice Act (EFCA) or “card check” legislation, would effectively take away an employee’s right to a federally supervised private ballot election when deciding whether to join a union, simply by having a majority of employees sign a card. Exposing employees to likely coercion by unions and peers, the only way to protect workers from intimidation is through the continued use of a federally supervised secret ballot so that personal decisions about whether to join a union remain private. Earlier attempts to pass EFCA were narrowly blocked; however, union officials have deemed this legislation their highest priority for the 111th Congress. The EFCA would dramatically overturn our current labor

DEPARTMENTS > Contact: Sheila Sterrett

law system and eliminate more than 70 years of precedent established under the National Labor Relations Act of 1935. Recent polling shows a majority of voters believe that private ballots are the cornerstones of the democratic process. Congress should listen to employees and continue to protect workers’ rights to private ballot union elections by opposing the Employee Free Choice Act.

REGULATORY Final FMLA Rule Announced by Department of Labor The Department of Labor (DOL) has published its final regulation regarding the Family and Medical Leave Act (FMLA). Strengthening the 15-year-old law that allows employees to take up to 12 weeks unpaid leave each year for

certain family and medical reasons, new FMLA regulations provide greater clarity and understanding of the directive. FMLA had been one of the most misunderstood and costly laws for both employers and employees due to difficult interpretation and implementation, which triggered substantial amounts of litigation, sometimes going all the way to the Supreme Court. Ensuring that employees are able to balance their work and family needs for decades to come, the new regulations were formed after the DOL received more than 15,000 comments from employers and employees, as well as other regulatory actions and congressional hearings. Some highlights of this new regulation include clarification on doctor visits, paid leave, notice of leave, fitness of duty and military leave.

State Revenue Continues to Fall Short For the fifth consecutive month this fiscal year, state revenue numbers have come in below budgetary estimates. As a result, Pennsylvania now faces a $657.9 million revenue gap, a shortfall that accounts for 6.8 percent of the state’s estimated revenue. In an attempt to help offset the effects of the less than stellar revenue numbers, Governor Ed Rendell has instituted $464 million in budget cuts that will be implemented throughout state government. An additional $36 million in budget cuts could be realized if the General Assembly and other independent state entities implement similar spending reductions. However, many officials fear that the current shortfall is only the tip of the iceberg and that the Commonwealth could be facing a more than $2 billion shortfall come June 30, the end of the fiscal year. As a result,

state legislators and the governor will be faced with tough decisions when constructing the 2009-10 state budget, including tapping into the state’s Rainy Day Fund (now at $750 million), tax increases or additional cuts. As bad as Pennsylvania’s situation may seem, we are not alone and are far from the worst. In fact, according to the Center on Budget and Policy Priorities, 27 states are posting mid-year budget shortfalls this year. Among the largest are Florida and New York who currently have a $1.7 billion and $1.2 billion shortfall, respectively. Sheila Sterrett is the director of Government Affairs at the Manufacturer & Business Association.

January 2009 > www.mbausa.org > 17


Legal Q&A I WANT TO SET UP A NONPROFIT ORGANIZATION. CAN A NONPROFIT PAY ITS STAFF? Yes. State law (which governs your nonprofit incorporation) and the Internal Revenue Service (which governs your taxexempt status) allow a nonprofit to pay reasonable salaries to directors, officers, employees or agents for services rendered to further the nonprofit corporation’s taxexempt purposes. ARE THE SERVICES THAT I OFFER THROUGH MY NONPROFIT REQUIRED TO BE FREE? No. 501(c)(3) charitable organizations are not required to offer services or products free or at cost. Nonetheless, providing such services or products at a substantial discount from commercial rates can help persuade the IRS that your group is a real charitable organization with charitable intentions. Charging full price for services or products does not usually create a benefit to the public.

WHEN DO I NEED TO APPLY FOR 501(C)(3) TAX-EXEMPT STATUS? In order to receive a tax-exemption dating from the date of your incorporation, you need to file IRS Form 1023 within 27 months of your incorporation.

NOTE: Three groups are not required to file Form 1023: churches, public charities that do not have gross receipts of more than $5,000 per year, and subordinate organizations exempt under a group exemption letter.

If you file after 27 months, your exemption will only be effective from the application’s postmark date. You can file for an extension of the 27-month deadline by attaching to your 1023 a statement providing the reasons why you failed to complete the 1023 application process within the 27-month period after your incorporation. You can find the acceptable reasons in the instructions for 1023. They include bad advice and information from a lawyer, accountant or IRS employee.

"TTEND A 'REE -EGAL #RIEFING

Each month, the Manufacture r & Business Association hosts regional brie fings for members to meet our employment law attorneys in person and get practical advice on some of today’s most pressing legal issues. Be sure to register at www. mbausa.org for one of thes e upcoming briefings: • January 14 in New Castle • January 21 in Titusville • February 4 in Erie and the Sharon-Hermitage Area Have a question? Call the Asso ciation’s HR/Legal Hotline at 800/815-2660 or 814/833-3200.

Join Us! Join Us! You don’t have to work for a specific company, or belong to a union. Anyone who lives or works in Erie or Crawford County can join our safe, strong, and secure financial institution. We can offer your employees a wide array of products and services like online banking and billpay, four unique checking account options, mortgages, auto loans, and much more. Incorporate the Credit Union into your employee benefits package and experience a world of rewards! Call Tara Quinn at 814.464.8237.

Did you know that we were recently named National Community Credit Union of the Year? 18 < www.mbausa.org < January 2009


DEPARTMENTS > Contact: John Onorato

New Year’s Resolutions for 2009 Lose weight. Quit smoking. Exercise more. January is filled with resolutions for the new year. Here are three resolutions that will help your company avoid legal issues not only in 2009, but beyond. First, make sure that you have assigned the proper overtime status to all employees. The number of wage and hour audits conducted by the Department of Labor have increased steadily for the past several years. If you are audited, your classification of employees as either exempt or nonexempt will be reviewed. The Fair Labor Standards Act, (FLSA) 29 §§ et seq., mandates that employees be paid overtime unless they fit a specific exemption. To help you determine if you have made the proper designation under the FLSA, go to the Members Only section of our Web site and look for

the “Exempt/Non-exempt Employee Determination Guide” under Employee Forms and Policies. We developed this guide to assist you in making this call. Second, review your policies. When was the last time you reviewed your personnel policies? Are there policies that, although stated, are not enforced? It is critical for an organization to have its policies or handbooks reviewed on a periodic basis. Only through a proper review can you be sure that your policies serve to protect you and ensure compliance with a host of employment laws. Third, make sure you take a moment and listen to your employees. It has been my experience that most employment-related disputes would have never become lawsuits if the employee felt that they had an opportunity to be heard, and once

heard, was given direct and fair feedback. An employee opinion survey conducted by a third party often serves as a way of bridging any communication gaps. If you would like more information about how we can help you keep these New Year’s resolutions, please contact us at 800/815-2660 or 814/833-3200.

Attorney John Onorato is the vice president/general counsel at the Manufacturer & Business Association. He assists member companies with their legal needs and HR questions.

January 2009 > www.mbausa.org > 19


MACHINING FABRICATING ASSEMBLING 3-D LASER GRINDING BROACHING MILLING PUNCHING CUTTING

BENDING FORMING ROBOTIC WELDING HIGH-SPEED SAWING SPLINING & GEARING HIGH-DEFINITION PLASMA BURNING BEARING CAP & HOUSINGS LINE

TWO FLEXIBLE MACHINING CELLS HIGH SPEED DRILLING AND TAPPING CELL NEW MAZAK NEXUS 450 CNC LATHE 22” DIA X 80” POWDER COATING

Order 26128 7/3/2008 8:46:14 AM 6.500 x 4.500

3TOCK INDEXES AND ASSET ALLOCATIONS ARE ONE THING "UT IN THE END WHAT REALLY MATTERS ARE THE INVESTMENTS WE MAKE IN THE LIVES OF THOSE AROUND US !T THE 0RIVATE #LIENT 'ROUP WE HELP YOU MANAGE GROW AND PRESERVE YOUR WEALTH SO YOU CAN PROVIDE FOR THOSE YOU CARE ABOUT MOST 7E OFFER STRATEGIES AND SOLUTIONS FOR PERSONAL TRUSTS ESTATE ADMINISTRATION AND CHARITABLE GIVING TO ENSURE YOU LEAVE YOUR LEGACY AND REACH YOUR PERSONAL GOALS n ONES THAT ENRICH AND ENHANCE YOUR LIFE AND THE LIVES OF THOSE AROUND YOU 4O EXPERIENCE THE 0RIVATE #LIENT 'ROUP CALL 3TEVE 3HILLING -ARKET %XECUTIVE AT


January 2009 > www.mbausa.org > 21


The Erie Community Foundation and The Nonprofit Partnership

planting the seeds

We work together to support nonprofit organizations in our community. Now more than ever, local nonprofits need you. Become involved. Learn more. It’s really quite simple, and all we need is a seed. 8FTU UI 4USFFU t &SJF 1" www.ErieCommunityFoundation.org

1 0 #PY t &SJF 1" www.TheNonprofitPartnership.org

Protecting Your Bottom Line. We know employers are under increasing pressure to control costs and build profits — now. That’s why when it comes to health care coverage, workers’ compensation, property, liability and personal insurance, you need to talk to us. As one of the region’s largest business insurance providers, we offer the industry’s most competitive coverage plans that can be customized to meet your specific goals. It’s time to work with a team of risk-management experts who are focused on protecting what matters ... your bottom line.

LOESEL-SCHAAF INSURANCE AGENCY, INC. Phone: (814) 833-5433 • Fax: (814) 838-6172 • Web site: www.LSinsure.com


EDITORIAL > by Vincent F. Halupczynski, CPA

Financial Adviser A Brief Walk for Nonprofits Through the New Form 990

The Internal Revenue Service (IRS) has changed the format for income tax reporting for tax-exempt organizations significantly for the first time in three decades. Commonly known as “Form 990,” it is based on three guiding principles – enhancing transparency, promoting compliance, and minimizing the filing burden. The new form is effective for calendar year 2008 and organizations whose fiscal year begins in 2008.

former Schedule B regarding information on certain contributions and contributors remains unchanged. Most of the remaining schedules are new and require information not typically provided in the past.

The new Form 990 has a graduated phase-in as follows:

The IRS has published a glossary of terms that is very helpful – not to be missed.

May file 990-EZ for:

If gross receipts are:

If assets are:

2008 tax year (filed in 2009) > $25,000 and < $1 million

< $2.5 million

2009 tax year (filed in 2010) > $25,000 and < $500,000

< $1.25 million

2010 and later tax years

< $500,000

> $50,000 and < $200,000

The new form consists of an 11page core and 16 possible schedule attachments (Schedules A through O, and Schedule R). Pages 3 and 4 of the new Form 990 list 37 questions that will determine which of the 16 schedules an organization must prepare. Management should review these pages as soon as possible to determine which schedules they will need to complete, and then review applicable schedules and the related instructions. Page 1 mainly consists of a summary of comparative financial information. It also contains seven questions regarding activities and governance. Page 2 requires information on an organization’s program service accomplishments for the fiscal year. This is very similar to the information required on the current Form 990. Page 5 contains a dozen mostly new questions regarding the organization’s compliance with various tax filings and other IRS requirements. Probably the most significant change to Form 990 is the new page 6 that asks 20 questions regarding governance, management, and required disclosures. This should be read and reviewed as soon as possible (the new Form 990, Schedules and Instructions can be

viewed and downloaded from the IRS Web site) by an organization’s executive management and board members. Most organizations will most likely need to adopt or amend various policies in order to answer certain questions in the affirmative. Pages 7 and 8 require information on compensation of officers, directors, trustees, key employees, highest compensated employees and independent contractors. The information requested is for both current and former individuals in these positions. Much of this information is similar to the prior form, but there are several differences to become familiar with by reviewing the form and its instructions. Much of the financial information (revenues, functional expenses and balance sheet) on pages 9, 10 and 11 is comparable to the old 990, with a bit more detail required. Most organizations will not find these pages to be problematic. Several of the 16 schedules require much of the same information required in the old form, but the information appears to be better presented on the applicable schedule. For example, the former Schedule A has been broken into four schedules (Schedules A, C, E and H). The

The new Form 990 represents a significant change in the amount of information an organization is disclosing. Keep in mind that an organization’s Form 990 is open for public inspection; and since the advent of Guidestar and other nonprofit watchdog groups, the information is easily accessible online. Tax-exempt management and boards of directors should review this information now to be well organized and prepared to accurately represent the organization’s information in the new financial reporting format. For more information, contact CPA Vincent F. Halupczynski at Malin, Bergquist & Company, LLP, Erie’s largest certified public accounting firm, at vhalupczynski@malinbergquist.com. Vincent F. Halupczynski, CPA is a partner with Malin, Bergquist & Co., LLP, in Erie. He heads the certified public accounting firm’s Not-for-Profit/Tax Exempt Organizations Group, which serves more than 150 nonprofit clients each year in Erie, Pittsburgh and Greensburg, Pennsylvania. The group provides clients with insights and solutions in audit, accounting and consulting issues, with expertise regarding the dynamics of governance, finance policies and accounting procedures.

January 2009 > www.mbausa.org > 23


People Buzz MEADVILLE MEDICAL CENTER NAMES CHIEF MEDICAL OFFICER The Meadville Medical Center Board of Directors has named Denise Johnson, MD, as the new chief medical officer of the hospital. She will oversee the Quality, and Medical Staff Departments, Continuing Medical Education, Osteopathic Internship Program, and Guest Services. Dr. Johnson is a boardcertified obstetrician/gynecologist who joined the medical staff at MMC in 1996. Meanwhile, Vincent J. Paczkoskie, Jr., MD, of Orthopedic Associates of Meadville, recently sat for and passed the subspecialty board certification examination in orthopedic sports medicine. This subspecialty certification is valid only when held in conjunction with a current board certification by the American Board of Orthopaedic Surgery, Inc. Dr. Paczkoskie practices with the Orthopedic Associates of Meadville and sees patients through the Crawford County Sports Medicine Clinic at Meadville Medical Center. Additionally, Javier Jurado, MD, cardiologist, has joined Meadville Cardiology Consultants; Robert McMichael, DO, anesthesiologist, has joined Anesthesia Consultants of Meadville; Kevin Kraeling, DO, family medicine specialist, has joined Meadville Emergency Physicians, PC; Amy Miles, DO, family medicine specialist, has joined Cambridge Springs Health Center and will also be working in the Primary Care Support Services, Inc.,

24 < www.mbausa.org < January 2009

office in Townville; and Emmanuelle Duterte, MD, psychiatrist has joined Meadville Psychiatric Associates. FIRST ENERGY GROUP ANNOUNCES PROMOTION Michael J. Dowling has been promoted to vice president of communications for FirstEnergy Corp. Dowling, an Erie native, began his career at Ohio Edison in 1986 as a member of the Communications Department. In 1990, he joined the Governmental Affairs Department and was named manager of Federal Governmental Affairs in 1997. He was named vice president of Federal Governmental Affairs in 2001, following the merger of FirstEnergy Corp. and the former GPU Inc. SUNBURST ELECTRONICS EXPANDS SALES STAFF Sunburst Electronics, a contract manufacturer of electronic controls based in Erie, Pennsylvania, and specializing in producing assemblies for the control and measurement, radio frequency, industrial, avionics, transportation and medical device markets, has hired Ken Votruba to manage sales and service for Sunburst customers in Ohio. Most recently, Votruba was a manufacturers’ representative for a variety of regional and international electronics manufacturers. Combined, he has more than 25 years’ account management and sales experience in the electronic assemblies industry. ERIE FEDERAL CREDIT UNION APPOINTS FINANCIAL LITERACY COORDINATOR The Erie Federal Credit Union has named Garret A. Tadda as its Financial Literacy and Community Outreach Coordinator. Tadda will be working within

EDITORIAL > Contact: Karen Torres

Erie and Crawford counties to integrate the credit union’s efforts to increase financial literacy awareness in our schools and in our communities. Tadda has 14 years of experience working directly with individuals and businesses in the financial and insurance industries. He holds a bachelor’s degree from Gannon University and a master’s degree in Business Administration from the University of Phoenix. ACHIEVEMENT CENTER APPOINTS DIRECTORS The Achievement Center, headquartered in Erie, recently hired several directors including: Holly Murphy, regional director for Chautauqua County; Susan A. Smith, director of Resource Development; Cindy Bonniger, director of Planning and Mary McIntosh, director of ADHD (attention deficit/hyperactivity disorder) Services. In addition, the current director of Physical Rehabilitation and Compliance Officer, Laura Plasczynski, will add director of Early Childhood Services to her title, while Mary Dwyer, director of Outpatient Mental Health will add the Early Childhood Behavior Specialists and Office of Children and Youth Family Support Services staff to her department. The Achievement Center, founded in 1923, provides therapeutic services to children and youth in Erie, Forest, Warren and Crawford counties and Chautauqua County, New York.


Timothy ExecutiveDirector Director Timothy J.J.Finegan, Finegan, Executive

$PNNVOJUZ 3FTPVSDFT GPS *OEFQFOEFODF $PNNVOJUZ 3FTPVSDFT GPS *OEFQFOEFODF

Timothy J. Finegan, Executive Director

Enrichingthe theQuality Qualityof of Life Life for for All Enriching AllPeople Peoplewith withDisabilities Disabilities

$PNNVOJUZ 3FTPVSDFT GPS *OEFQFOEFODF

Are: WhoWho We We Are: CRI is a community based, non-residential, non-profit organization that provides services to individuals

CRI with is a community organization that provides services to individuals disabilities inbased, order non-residential, to maximize theirnon-profit independence and the accessibility of the communities in Enriching the Quality of Life for All People with Disabilities withwhich disabilities in order maximize their500 independence and Centers the accessibility of theLiving communities they live. CRI istoone of more than federally funded for Independent across in which live. CRI is one morewith thandisabilities 500 federally funded Centers for Independent across thethey nation established by of people for people with disabilities. CRI has an Living operating Who We Are: the nation established by people with disabilities withstaff disabilities. CRIcare hasattendants. an operating budget in excess of $63,000,000. CRI employs over for 800 people professional and personal CRI is aincommunity based, non-residential, non-profit organization provides services to attendants. individuals budget excess of $63,000,000. CRI employs over 800 professionalthat staff and personal care withServices disabilities order to maximize their independence and the accessibility of the communities in WeinProvide: which theyWe live. CRI is one of Care more than 500 federally funded Centers for Independent Living across •Attendant Services Provide: •Independent Living Skills the nation established by people with disabilities for people with disabilities. CRI has an operating •AdvocacyCare •Information &Living Referral •Attendant •Independent Skills budget in excess of $63,000,000. CRI employs over 800 professional staff and personal care attendants.

•Assistive Technology •Peer Support & Referral •Advocacy •Information •Home Modifications •Assistive Technology •Peer Support Services We Provide: *Call for services available in your county •Home Modifications •Attendant Care •Independent Living Skills Contact Information: *Call for services available in your county Main office: •Advocacy 3410 West 12th Street, Erie, PA 16505 •Information & Referral Contact •Assistive Technology Voice:Information: (814) 838-7222 or (800) 530-5541 TTY: (814) 838-8115 •Peer Support MainFax: office: West 12th Street, Erie, PA 16505 (814)3410 838-8491 www.crinet.org •Home Modifications

Voice: (814) 838-7222 or (800) 530-5541 TTY: (814) 838-8115 *Call for services available in your county Fax: (814) 838-8491 www.crinet.org

ContactSatellite Information: Offices:

Altoona (866) 12th 944-2645 Main office: 3410 West Street, Erie, PA 16505

Bradford Office (866) 313-1060 Voice: (814) 838-7222 or (800) 530-5541 TTY: (814) 838-8115 Satellite Offices: Clarion (800) 372-0140 Fax: (814) 838-8491 www.crinet.org Altoona (866) 944-2645 Clearfield (866) 619-6405

Bradford Office (866) 313-1060 Hermitage (877) 347-4121 Clarion (800) 372-0140 Lewisburg (800) 332-4135 Satellite Offices: Clearfield (866)(800) 619-6405 Lewistown 309-0989 Altoona (866) 944-2645 Hermitage (877) Oil City (866)347-4121 209-3882 Bradford Office (866) 313-1060 Lewisburg (800) 332-4135 Warren (866) 579-3404 Clarion (800) 372-0140 Lewistown Wellsboro(800) (866)309-0989 401-7911 Clearfield (866) 619-6405 Oil City (866) 209-3882 Hermitage (877) 347-4121

! 4A+78 +39+7 ,47 3*+5+3*+39 /;/3- 99+3*'39 '7+ 74-7'2 8+7;/)+8 /3 1'7/43 7'<,47* 7/+ 47+89

%+3'3-4 '3* &'77+3 )4:39/+8

! '184 574;/*+8 /98 99+3*'39 '7+ 74-7'2 /3 7289743- +';+7 +*,47* 1'/7 7'*,47* :91+7 '2(7/' '2+743 +397+ 1'7/43 1+'7@+1* 1/3943 41:2(/' 10 7/+ 7'301/3 47+89 :1943 7'<,47* :2(+71'3* :39/3-943 3*/'3' +A+7843 :3/'9' '<7+3)+ >)42/3- :?+73+ ) +'3 +7)+7 /C/3 4394:7 ":11/;'3 ":86:+.'33' #/4-' $3/43 %+3'3-4 479.:2(+71'3* +77> 499+7 ").:>10/11 "42+78+9 "3>*+7 &'77+3 &>42/3- '3* 4:39/+8

! 4A+78 +39+7 ,47 3*+5+3*+39 /;/3- 99+3*'39 '7+ 74-7'2 8+7;/)+8 /3 1'7/43 7'<,47* 7/+ 47+89

%+3'3-4 '3* &'77+3 )4:39/+8

Warren (866) 579-3404 ! '184 574;/*+8 /98 99+3*'39 '7+

74-7'2 /3 7289743- +';+7 +*,47* 1'/7 7'*,47* :91+7 '2(7/' Lewisburg (800) 332-4135 '2+743 +397+ 1'7/43 1+'7@+1* 1/3943 41:2(/' 10 7/+ 7'301/3 47+89 :1943 7'<,47* :2(+71'3* :39/3-943 3*/'3' +A+7843 :3/'9' '<7+3)+ >)42/3- :?+73+ ) +'3 +7)+7 /C/3 4394:7 Wellsboro (866) 401-7911 479.:2(+71'3* +77> 499+7 ").:>10/11 "42+78+9 "3>*+7 ":11/;'3 ":86:+.'33' #/4-' $3/43 %+3'3-4 Lewistown (800) 309-0989 Mission Statement: &'77+3 &>42/3- '3* 4:39/+8

Oil City (866) 209-3882 Community Resources for Independence, Inc. is committed to preserve, ! 4A+78 +39+7 ,47 3*+5+3*+39 /;/3- 99+3*'39 '7+ 74-7'2 8+7;/)+8 /3 1'7/43 7'<,47* 7/+ 47+89 %+3'3-4 '3* &'77+3 )4:39/+8

and enrich the quality of life for all people with disabilities. Warrenenhance (866) 579-3404 ! '184 574;/*+8 /98 99+3*'39 '7+ 74-7'2 /3 7289743- +';+7 +*,47* 1'/7 7'*,47* :91+7 '2(7/' '2+743 +397+ 1'7/43 1+'7@+1* 1/3943 41:2(/' 10 7/+ 7'301/3 47+89 :1943 7'<,47* :2(+71'3* :39/3-943 3*/'3' +A+7843 :3/'9' '<7+3)+ >)42/3- :?+73+ ) +'3 +7)+7 /C/3 4394:7 Wellsboro (866) 401-7911 Mission Statement: 479.:2(+71'3* +77> 499+7 ").:>10/11 "42+78+9 "3>*+7 ":11/;'3 ":86:+.'33' #/4-' $3/43 %+3'3-4 &'77+3 &>42/3- '3* 4:39/+8

Community Resources for Independence, Inc. is committed to preserve, enhance and enrich the quality lifeAgency* for all people with disabilities. *Unitedof Way Mission Statement: Community Resources for Independence, Inc. is committed to preserve, enhance and enrich the quality of life for all people with disabilities. *United Way Agency*



Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.