Letter From the Chair. Executive Staff. Jim Hall, President & CEO

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1 2006 Annual Report

2 Letter from the Chair 1 Executive Staff 2 Children s Miracle Network Mission 3 Programs and Services 5 Education Programs 6 Fund Raising Programs 7 Sponsor Programs 8 Children s Miracle Network Impact 9 Champions Across America and Canada 11 Board of Trustees 13 Borad of Governors 14 Children s Hospitals 16 Children s Miracle Network Hospitals 17 Children s Miracle Network Television Partners 19 Children s Miracle Network Radio Partners 21 Children s Miracle Network Sponsors Financial Statements 25 Children s Miracle Network is a non-profit organization dedicated to saving and improving the lives of children by raising funds for children¹s hospitals.

3 Letter From the Chair Executive Staff Tom Sargent Chairman Children s Miracle Network Board of Trustees Jim Hall, President & CEO Scott J. Burt, Executive Vice President & COO Craig Sorensen, Chief Marketing Officer Brian Hazelgren, Chief Development Officer John Hartman, Chief Operating Officer - Canada Anthony Rehmer, Chief Information Officer Children s Miracle Network s founding commitment to keep funds local continues to drive our mission. We are excited about what Children s Miracle Network has accomplished this year and look forward to all the value we can provide to our member hospitals in the upcoming year. Jim Hall, President & CEO It has been another remarkable year of life-saving care, preventative education and advanced research at Children s Miracle Network hospitals. The mission and motivation of Children s Miracle Network to save and improve the lives of children by raising funds and awareness for children s hospitals continues to direct all aspects of the organization. Claire Richards, Chief Financial Officer For the past 25 years Children s Miracle Network has helped millions of children more than any other organization in North America. At our 170 premier hospitals children are treated by exceptional caregivers for all types of afflictions such as cancer, muscular dystrophy, AIDS, diabetes, heart disease, and serious injuries. In 2006 Children s Miracle Network hospitals were able to help 17 million children feel better. Supporting these children s hospitals are generous corporate sponsors, media partners and individual donors who care deeply about the children in their community. With their generous fund raising support, Children s Miracle Network hospitals are able to provide charity care worth billions every year. From the day of its founding, Children s Miracle Network pledged that donors contributions would go to their Children s Miracle Network hospital to help children in their own communities. That founding pledge set us apart from other organizations and continues to illuminate why Children s Miracle Network remains one of the most noted children s charities in North America. 1 Children s Miracle Network 2006 Annual Report

4 Children s Miracle Network s Mission Children s Miracle Network is a non-profit organization dedicated to saving and improving the lives of children by raising funds for children s hospitals across North America. Each year the 170 Children s Miracle Network hospitals provide the finest medical care, life-saving research and preventative education to help millions of kids overcome diseases and injuries of every kind. Care Children s Miracle Network hospitals provide state-of-the-art medical care to address the unique health needs of children from child-sized surgical equipment to neonatal incubators and the world s top pediatric specialists. Education Children s Miracle Network hospitals keep millions of kids out of the hospital each year through community outreach and prevention programs such as bicycle safety, healthy eating, asthma clinics and immunizations. Research Critical pediatric research is conducted at Children s Miracle Network hospitals in areas such as childhood cancer, cystic fibrosis, heart surgery, organ transplants and pediatric AIDS. This research is improving treatment options and saving children s lives. 3 Children s Miracle Network 2006 Annual Report

5 Programs and Services Education Programs Children s Hospital Programs & Services COMMUNITY SERVICES AND OUTREACH SUPPORT Children s Miracle Network raises funds for its member hospitals discretionary use in addressing the most critical children s health care needs in their respective communities. Funds raised through Children s Miracle Network for its 170 children s hospitals are provided to each hospital solely as discretionary funds. Through these hospitals, Children s Miracle Network funds are used for a wide variety of hospital programs and services. A sampling of these programs and services includes pediatric research for cancer treatments, living donor transplants, sickle cell anemia and juvenile diabetes treatment; critical and urgent care units; pediatric and neonatal intensive care support; specially designed equipment, staffing and medical training to meet children s unique health care needs; life-flight helicopters and other emergency vehicles; capital expansion of existing facilities to meet children s medical needs in a given area; and community outreach, prevention and awareness programs ranging from immunizations and childhood obesity education to bicycle safety clinics and accident prevention programs. In 2006 Children s Miracle Network raised more than $200 million to support these and other programs and services administered by its member children s hospitals. Children s Miracle Network develops, produces, broadcasts and promotes awareness programming concerning health, welfare, and development needs of children. This is accomplished by an annual television broadcast and campaign, which educates the public on how they can help children treated by their Children s Miracle Network hospital and support the efforts of Children s Miracle Network corporate partners to help children treated by member hospitals. Children s Miracle Network also utilizes radio stations throughout the country to educate the public about essential services provided by children s hospitals and generate awareness for Children s Miracle Network hospitals. A public website has been created by Children s Miracle Network to inform the public about its mission and programs and to help people locate the Children s Miracle Network hospital in their area. Network program services Children s Miracle Network develops relationships with corporate partners to create fund raising programs. Most corporate sponsors sell paper Miracle Balloons to customers and employees for a donation to their Children s Miracle Network hospital. Other support activities include walks, golf tournaments, bake sales, etc. All together, Children s Miracle Network corporate partners raise more than $120 million each year to help kids treated at participating children s hospitals. Constituents of Children s Miracle Network are also provided with a large network of online networking/ fund raising tools, publications, monthly national conference calls, international conferences and networking meetings. Children s Miracle Network also helps its member hospitals identify, recruit and train college and university students to conduct Dance Marathons and helps radio stations to conduct Radiothons. Children s Miracle Network Radiothon efforts raise more than $50 million each year for kids. Network Program Services involves Children s Miracle Network s select charity-care programs that are currently provided to its 170 associated children s hospitals thorughout the United States and Canada. Hospital participation in Children s Miracle Network provides exclusive access to some of the largest corporate charity-care programs ever developed. 5 Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 6

6 Fund Raising Programs Sponsor Programs Corporate Campaign Sponsor Specific Programs The Children s Miracle Network corporate campaign provides the largest vehicle for the Children s Miracle Network message. The implementation of Corporate Direct provides a consistent message and image at more than 60,000 partner locations. Children s Miracle Network was built on creating and executing grassroots fund raising campaigns with committed corporate partners. Today, the corporate campaign remains the number-one fund raising focus and core competency. Miracle Balloons 2006 marked the 20-year anniversary of the Miracle Balloon, which is Children s Miracle Network s most successful fund raising program. In 2006, Miracle Balloons hung from sponsor ceilings, walls and windows in 33,281 North American locations. More than 45 corporate partners participate in the program and over 33 million paper icons were printed in The red and yellow paper Miracle Balloon has raised more than $250 million for children s hospitals since Children s Miracle Network works with each corporate partner to create sponsor-specific programs designed to support children s hospitals and meet the sponsor s objectives. Children s Miracle Network sponsors are an example to the corporate community with their dedicated and creative approach to fund raising. Radiothon The Children s Miracle Network Radiothon program continues to be one of Children s Miracle Network s most successful fund raising initiatives. Over 30 million listeners tune in to 270 radio partners each year to hear emotional stories about local kids treated at Children s Miracle Network hospitals. Dedicating an average of three days during the year to their Children s Miracle Network Radiothon, these partners raised more than $50 million in 2006 and developed lasting bonds with their listening audience. Direct Mail The Children s Miracle Network Direct Mail program is a year-round program with multiple mailings to 7 million households in 75 markets, raising over $6 million in Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 8

7 Children s Miracle Network s Impact Children s Miracle Network s Impact While in the hospital receiving treatment for bone cancer and leukemia, Francesca Arnaudo, 10, found hope and healing through a pediatric art therapy program funded by Children s Miracle Network % 80 88% 70 76% 60 Nearly all children who suffer from costly 40 and complex conditions are treated at Children s Miracle Network hospitals. Children s Miracle 20 Network provides its member hospitals with unrestricted pediatric funds, which lets each hospital decide how to best meet the needs of children in their area. The majority Transplants Fibrosis of funds are raised at the grassroots level, one dollar at a time. The chart below illustrates how Children s Miracle Network hospitals spent Children s Miracle Network funds in Lung & Heart Cancer Cystic 5% Child Life specialists supported by Children s Miracle Network funds proved invaluable for the recovery of Derek Gaskins, 12, who was involved in a serious shotgun accident. After doctors saved his life, specialists helped Derek deal with the trauma of the accident and helped him recover emotionally as well as physically. 15% 30% 39% 11% Lauren Choi, 7, wasn t expected to ever walk again after suffering a spinal cord injury during a car accident. Therapeutic equipment purchased with Children s Miracle Network funds helped Lauren recover and increase her strength. Seven months after her accident, Lauren walked out of the hospital with a huge crowd of supporters cheering her every step. Charitable Care State-of-the-art Equipment Preventative Education Other Immediate Medical Needs Life-saving Research 17 million children and their families are served by Children s Miracle Network hospitals each year... more than any other children s cause. 17 million Children Children s Miracle Network funded pediatric intensive care equipment that helped diagnose and treat Matthew Cummings brain hemorrhage. If his Children s Miracle Network hospital didn t have this equipment, Matthew, 6, would have been forced to fly to a hospital in another state while his life hung in balance. 3.6 Million Members 11,107 Wishes 4,500 Children 9 Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 10

8 Champions Across America & Canada Champions Across America & Canada Champions Across America and Champions Across Canada: Ambassadors for Children s Hospitals Children s Miracle Network Champions Across America presented by CO-OP Financial Services and Champions Across Canada presented by Wal-Mart Canada Corp., are programs that honor remarkable children who have triumphed despite severe medical challenges. For their courage and perseverance, these children have been selected as ambassadors for the 17 million kids treated each year at Children s Miracle Network children s hospitals. Spreading the Word: A Child From Every State and Province Each spring these young ambassadors travel to Capitol Hill and The White House in Washington, D.C., and Parliament Hill and Rideau Hall in Ottawa, Canada, to share the message that their lives and the lives of millions of children just like them are better because of the tremendous work of children s hospitals. They also spread the word by participating in the national television production of the Children s Miracle Network Celebration at Walt Disney World. Champions Across America and Champions Across Canada continue to be the most successful public awareness campaigns in Children s Miracle Network s history. Just within the United States, Champions participated in more than 34 television and 43 radio interviews. Hundreds of television, newspaper, and web stories also preceded the Champions Across America and Champions Across Canada trips. Champion children were also recognized in the March 28, 2006 issue of U.S. News & World Report. Sammy Crocker Age 8 A fast-moving house fire enveloped Sammy Croker s home in Philadelphia, Pa. Just 2 years old then, Sammy made it out alive but suffered severe burns over 60 percent of his body. His legs were so badly damaged that both legs had to be amputated below the knee. His right ear was completely destroyed. In the months and years that followed, Sammy bravely endured countless hours of burn treatment, rehabiliation and therapy at The Children s Hospital of Philadelphia. He has had more than 25 medical procedures so far, including the latest procedure to reconstruct his severely burned scalp. An operation to reconstruct his ear is still ahead. Despite all he s been through and the fact that he spends 23 hours a day in a compression garment to flatten scar tissue, Sammy manages to have fun and goof off as enthusiastically as any 5-year-old. His doctors and nurses are in awe of his strength. Caleigh Turnbull Age 5 What began with an outing in downtown London for Caleigh Turnbull and her grandmother became a terrifying ordeal for the entire Turnbull family when a taxicab veered onto the sidewalk, striking the pair and throwing them 30 feet across a parking lot. Both Caleigh and her grandmother suffered multiple injuries, and Caleigh was transported to Children s Hospital of Western Ontario (CHWO) with lifethreatening injuries. Arriving at CHWO, Caleigh was immediately sent to the pediatric critical care unit and placed in a medically induced coma to combat brain swelling. The prognosis was grim from the outset. Caleigh remained in a coma for nine days. Slowly brought back to consciousness, Caleigh s condition gave her doctors cause for concern about the extent of her brain injury. In what can only be described as miraculous, Caleigh began speaking almost immediately after extubation. The medical team at CHWO was amazed. Caleigh s progress and charismatic personality captivated all who came in contact with her. 11 Children s Miracle Network 2006 Annual Report Sammy sustained very severe burns that for all practical purposes could have taken his life, said Dr. Richard Kirschner, Sammy s surgeon. Then he had a very difficult reconstructive mountain to climb. Now he s walking and functioning like every other kid. His spirit is unbroken. Children s Miracle Network 2006 Annual Report 15

9 Board of Trustees Board of Governors CHAIR Tom Sargent President FIRST TECHNOLOGY CREDIT UNION VICE CHAIR/ CHAIR ELECT Dianna Morgan Senior VP Public Affairs (retired) WALT DISNEY WORLD COMPANY IMMEDIATE PAST CHAIR Jim Dearth, MD CEO THE CHILDREN S HOSPITAL AND HEALTH SYSTEM TREASURER Jim Shmerling CEO THE CHILDREN S HOSPITAL, DENVER SECRETARY Mario Pilozzi President & CEO WAL-MART CANADA CORP. CHAIR OF ETHICS COMMITTEE Richard Bucciarelli, MD Vice President for Government Relations UNIVERSITY OF FLORIDA BOARD MEMBERS Jimmy Alexander VP, Human Resources ACE HARDWARE Steven Altschuler, MD President & CEO THE CHILDREN S HOSPITAL OF PHILADELPHIA John Bel President ARKANSAS CHILDREN S HOSPITAL FOUNDATION Don Black President & CEO CHILD HEALTH CORPORATION OF AMERICA Carolynn Bond Community Affairs Director, Liaison to Children s Miracle Network RE/MAX John Bozard President ARNOLD PALMER MEDICAL CENTER & ARNOLD PALMER MEDICAL CENTER FOUNDATION Lissa A. McAnarney, MD Professor, Pediatrics GOLISANO CHILDREN S HOSPITAL Nana Mensah Chairman & CEO XPORTS, INC. Jimmy Osmond Marie Osmond C0-FOUNDER John Schneider CO-FOUNDER Tom Sullivan President CHILDREN S MEMORIAL FOUNDATION Jeff Smith Sr. Vice President and General Counsel WALT DISNEY WORLD COMPANY Jon Vice President CHILDREN S HEALTH SYSTEM OF WISCONSIN, INC. CHAIR Vinnie Tracey President RE/MAX INTERNATIONAL, INC. IMMEDIATE PAST CHAIR Carolyn F. Bivens Commissioner LPGA BOARD MEMBERS Charles E. Amato Chairman SOUTHWEST BUSINESS CORPORATION Gary Buroker Senior VP, Marketing & Planning SPEEDWAY SUPERAMERICA Paul V. Carlucci Chairman & CEO NEWS AMERICA MARKETING Jim Dearth, MD CHILDREN S MIRACLE NETWORK BOARD OF TRUSTEES Peter Ferrara Senior President & CEO HD DIGITAL RADIO ALLIANCE Jeff Friedman Vice President VNU BUSINESS PUBLICATIONS Don Harris Executive (Retired) WAL-MART Michael Keller Chief Brand Officer INTERNATIONAL DAIRY QUEEN Greg Kennedy Vice President Airport Customer Service, ATL Worldport DELTA AIR LINES Marilyn McCoo Michael Mischler Executive Vice President Marketing, Advertising CBS TELEVISION DISTRIBUTION George Mohacsi President/CEO FORESTERS Dianna Morgan CHILDREN S MIRACLE NETWORK BOARD OF TRUSTEES Brett Hutchens President & CEO 13 Children s Miracle Network 2006 Annual Report CASTO LIFESTYLE PROPERTIES Children s Miracle Network 2006 Annual Report 14 Merlin Olsen Jerry Reitman Vice Chairman THE CALLAHAN GROUP, LLC Mary Lou Retton President MLR ENTERTAINMENT, INC. Steve Rum Senior Associate Vice President, Development and Alumni Relations THE FUND FOR JOHNS HOPKINS MEDICINE Tom Sargent Chair CHILDREN S MIRACLE NETWORK BOARD OF TRUSTEES Curtis Sliwa Founder GUARDIAN ANGELS Tom E. Smith Retired FOOD LION, INC. John Standley CEO PATHMARK STORES, INC. Celia Swanson Executive VP of Change Management WAL-MART STORES, INC. Kevin Twomey Senior VP & CFO RITE AID CORPORATION Frank J. Vuono Partner 16W MARKETING Steve Weisz President, Marriott Vacation Club International MARRIOTT INTERNATIONAL Patricia M. Wyatt President North America HIT ENTERTAINMENT

10 Children s Hospitals Children s Miracle Network Hospitals Provide $2.5 billion in charity (uncompensated) care each year % 80 88% Treat 98% of all children needing heart or lung transplants 70 76% 60 Treat 88% of all children with cancer Treat 76% of all children with cystic fibrosis Treat 90% of all children with sickle cell anemia 10 Treat 72% of children with pediatric AIDS Lung & Heart Transplants Cancer Cystic Fibrosis Devote 60% of services to children under age six and 25% to newborns Train 60% of pediatricians and 80% of all pediatric specialists 5% Each Year Children s Miracle Network Hospitals Treat 15% 6 Million Children for Accident Trauma 49,000 Children for Cancer 39% 45,000 Children for Heart Defects and Problems 30% 1,300 Children for Sickle Cell Anemia 11% Charitable Care State-of-the-art Equipment Preve Other Immediate Medical Needs Life-saving Children s Miracle Network 2006 Annual Report 16

11 Children s Miracle Network Hospitals UNITED STATES Alabama The Children s Hospital University of South Alabama Children s & Women s Hospital ALASKA Children s Hospital at Providence ARIZONA Tucson Medical Center Phoenix Children s Hospital ARKANSAS Arkansas Children s Hospital CALIFORNIA Children s Hospital Central California Children s Hospital & Research Center at Oakland Rady Children s Hospital and Health Center Santa Barbara Cottage Hospital Children s Hospital Los Angeles Bakersfield Memorial Hospital UC Davis Medical Center Salinas Valley Memorial Hospital COLORADO The Children s Hospital CONNECTICUT Connecticut Children s Medical Center FLORIDA UF and Shands Jacksonville Miami Children s Hospital Foundation The Shands Children s Hospital at the University of Florida Sacred Heart Children s Hospital Arnold Palmer Hospital for Children All Children s Hospital Wolfson Children s Hospital GEORGIA Phoebe Putney Memorial Hospital Medical College of Georgia Children s Medical Center Children s Healthcare of Atlanta The Medical Center Backus Children s Hospital at Memorial Health University Medical Center The Medical Center HAWAII Kapiolani Medical Center for Women & Children IDAHO St. Luke s Children s Hospital Kootenai Medical Center ILLINOIS Children s Memorial Hospital St. John s Hospital Children s Hospital of Illinois INDIANA Riley Hospital for Children IOWA Children s Hospital of Iowa at the University of Iowa Hospitals & Clinics St. Luke s Regional Medical Center KANSAS KU Medical Center Via Christi Regional Medical Center St. Francis Health Center KENTUCKY Kentucky Children s Hospital LOUISIANA CHRISTUS St. Frances Cabrini Hospital Children s Hospital New Orleans Our Lady of the Lake Children s Hospital CHRISTUS St. Patrick Hospital MAINE The Barbara Bush Children s Hospital at Maine Medical Center Eastern Maine Medical Center Blue Hill Memorial Hospital Sebasticook Valley Hospital The Acadia Hospital The Aroostook Medical Center Eastern Maine Healthcare Systems C.A. Dean Memorial Hospital MARYLAND Johns Hopkins Children s Center MASSACHUSETTS Children s Hospital Boston Baystate Children s Hospital MICHIGAN Helen DeVos Children s Hospital William Beaumont Hospital Sparrow Hospital Hurley Medical Center MINNESOTA Gillette Children s Specialty Healthcare MISSISSIPPI Blair E. Batson Hospital for Children at the University of Mississippi Medical Center MISSOURI The Freeman Health System Children s Mercy Hospitals & Clinics Cox Health Cardinal Glennon Children s Hospital St. Louis Children s Hospital MU Children s Hospital MONTANA Shodair Children s Specialty Hospital NEBRASKA Children s Hospital - Omaha NEVADA Renown Health Regional Medical Center St. Rose Dominican Hospitals NEW JERSEY The Bristol-Myers Squibb Children s Hospital at Robert Wood Johnson University Hospital Children s Specialized Hospital NEW MEXICO UNM Children s Hospital The Memorial Medical Center Foundation NEW YORK Schneider Children s Hospital of NS-LIJHS Arnot Ogden Medical Center The Children s Hospital at Montefiore Maria Fareri Children s Hospital at Westchester Medical Center Faxton-St. Luke s Healthcare Samaritan Medical Center Golisano Children s Hospital at University Hospital Golisano Children s Hospital at University Hospital Golisano Children s Hospital at Strong Women & Children s Hospital of Buffalo Children s Hospital at Albany Medical Center NORTH CAROLINA Levine Children s Hospital University Health Systems of Eastern Carolina s Children s Hospital Duke Children s Hospital & Health Center NORTH DAKOTA MeritCare Children s Hospital OHIO Cincinnati Children s Hospital Medical Center The Children s Medical Center Children s Hospital Columbus Rainbow Babies and Children s Hospital of University Hospitals of Cleveland Mercy Children s Hospital Akron Children s Hospital Tod Children s Hospital OKLAHOMA Children s Medical Research Institute The Children s Hospital at Saint Francis OREGON Sacred Heart Medical Center Rogue Valley Medical Center Doernbecher Children s Hospital PENNSYLVANIA Geisinger Health System Penn State Children s Hospital at Penn State Milton S. Hershey Medical Center Saint Vincent Health Center The Children s Hospital of Philadelphia The Janet Weis Children s Hospital at Geisenger SOUTH CAROLINA Palmetto Health Children s Hospital Medical University of South Carolina Children s Hospital Greenville Hospital System Children s Hospital McLeod Children s Hospital SOUTH DAKOTA Sanford Children s Hospital Rapid City Regional Hospital TENNESSEE Wellmont Health System T.C. Thompson Children s Hospital Le Bonheur Children s Medical Center Monroe Carrell Jr. Children s Hospital at Vanderbilt East Tennessee Children s Hospital TEXAS Scott & White Memorial Hospital Driscoll Children s Hospital Baptist St. Anthony s Health System Hendrick Medical Center United Regional Health Care System UMC Children s Hospital Christus Hospital - St. Mary Cook Children s Medical Center Texas Children s Hospital Texas Tech University Health Sciences Center Mother Frances Hospital Medical Center Hospital Children s Medical Center of Dallas Christus Santa Rosa Children s Hospital Shannon Medical Center Christus Hospital - St. Elizabeth Christus Jasper Memorial Hospital Dell Children s Medical Center of Central, TX UTAH Primary Children s Medical Center VERMONT Fletcher Allen Health Care VIRGINIA Children s Hospital University of Virginia Children s Hospital Virginia Baptist Hospital VCU Children s Medical Center Children s Hospital of The King s Daughters Carilion Medical Center for Children WASHINGTON Mt. Carmel Hospital Holy Family Hospital Sacred Heart Children s Hospital Deaconess Medical Center Deer Park Hospital St. Joseph s Hospital St. Luke s Rehabilitation Institute Valley Hospital & Medical Center Yakima Valley Memorial Hospital Children s Hospital and Regional Medical Center WASHINGTON DC Children s National Medical Center WEST VIRGINIA West Virginia University Children s Hospital WISCONSIN Children s Hospital of Wisconsin Gundersen Lutheran Medical Center Saint Joseph s Children s Hospital of Marshfield CANADA Calgary, AB Alberta Children s Hospital Foundation Edmonton, AB Stollery Children s Hospital Foundation Halifax, NS IWK - Health Centre Foundation Hamilton, ON McMaster Children s Hospital London, ON Children s Health Foundation Ottawa, ON Children s Hospital of Eastern Ontario Foundation Sainte Foy, QC Operation Enfant Soleil Saskatoon, SK Children s Health & Hospital Foundation of Saskatchewan St. John s, NL Janeway Children s Hospital Foundation Toronto, ON SickKids Foundation Vancouver, BC BC Children s Hospital Foundation Winnipeg, MB Children s Hospital Foundation of Manitoba 17 Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 18

12 Children s Miracle Network Television Partners UNITED STATES Philadelphia Cn8-cable Seattle-Tacoma Komo-abc Kapp-abc Akron Wbnx-cw Ft. Myers-Naples Wtvk-upn Tampa-St. Petersburg Wfla-nbc Minneapolis-St. Paul Kstc-abc Miami-Ft. Lauderdale Wbfs-upn St. Louis Charter Cable Portland, OR Kgw-nbc Indianapolis Wtvw-fox Wpta-fox Wthr-nbc Wthi-cbs San Diego Cox Cable Nashville Wtvf-cbs Milwaukee Time Warner Cable Cincinnati Wkrc-cbs Kansas City Kctv-cbs Columbus, OH Wbns-cbs Idaho Falls-Pocatello Kidk-cbs Salt Lake City Ksl-nbc Grand Rapids-Kalamazoo Wotv-Abc Wgtu/wgtq-Abc Norfolk-Portsmouth Wvec-Abc New Orleans Wdsu-Nbc Oklahoma City Koco-Abc Harrisburg-Lancaster Wgal-Nbc Wilkes Barre-Scranton Wyou-Cbs Wtaj-Cbs Wbng-Cbs Albany-Schenectady-Troy Wxxa-Fox Dayton Whio-Cbs Mobile Fox-10 Knoxville Wbir-Nbc Flint-Saginaw-Bay City Wjrt-Abc Wichita-Hutchinson Plus Cox Now 22-Cable Toledo Wupw-Fox Lexington Wkyt-Cbs Roanoke-Lynchburg Wset-Abc Green Bay-Appleton Time Warner Cable Rochester, NY Whec-Nbc Springfield, MO Kytv-Nbc Portland-Auburn Wgme-Cbs Cedar Rapids-Waterloo Mediacom Cable Jackson, MS Wjtv-Cbs Tri-cities, TN-VA Wjhl-Cbs Youngstown Wfmj-Nbc Baton Rouge Wbrz-Abc Savannah Wtoc-Cbs Greenville-New Bern Witn-Nbc Lansing Wilx-Nbc Tyler-Longview Kytx-Cbs Sioux Falls (Mitchell) Kelo-Cbs Peoria-Bloomington Week-Nbc Augusta Wagt-Nbc Florence-Myrtle Beach Wbtw-Cbs Fargo-Valley City Kvly-Nbc Kumv-Nbc Kfyr-Nbc Kmot-Nbc Kqcd-Nbc Santa Barbara-Santa Maria Keyt-Abc Monterey-Salinas Comcast Cable Ksbw-Nbc Charleston, SC Wcsc-Cbs Macon Wmaz-Cbs Boise Kivi-Abc Amarillo Kamr-Nbc Fox-14 Corpus Christi Kiii-Abc Harlingen-Wesclaco Kgbt-Nbc La Crosse-Eau Claire Wqow-Abc Wxow-Abc Wausau-Rhinelander Waow-Abc Beaumont-Port Arthur Kfdm-Cbs Wichita Falls & Lawton Kfdx-Nbc Erie Wicu-Nbc Sioux City Ktiv-Nbc Lubbock Kcbd-Nbc Albany, GA Walb-Nbc Odessa-Midland Kwes-Nbc Bangor Wabi-Cbs Abilene-Sweetwater Ktxs-Abc Utica Wktv-Nbc Elmira Weny-Abc Alexandria, LA Kalb-Nbc Rapid City Kevn-Fox Lake Charles Kplc-Nbc Charlottesville Wvir-Nbc San Angelo Klst-Cbs Helena Ktvq-Cbs Kxlf-Cbs Krtv-Cbs Kpax-Cbs Canada Quebec Tva Toronto-North & Central Ontario Cfto-Ctv Vancouver-Province of BC Global-Ind London-Western Ontario Cfpl-Ind Ottawa-Eastern Ontario Cjoh-Ctv Halifax NS-Maritimes Cjch-Ctv Edmonton-Northern Alberta Cfrn-ctv Calgary-Alberta Cict-Ind Manitoba A-channel-Ind Saskatchewan Cfsk-Ind Newfoundland Cbnt-Cbc Hamilton Ch Tv-Cable 19 Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 20

13 Children s Miracle Network Radio Partners Abbotsford, BC CFSR-FM Abilene, TX KCDD-FM KTLT-FM KHXS-FM KVRP-FM KBCY-FM KAGT-FM Akron, OH WKDD-FM Albany, GA WOBB-FM WGY-AM Albuquerque, NM KPEK-FM Alexandria, LA KQID-FM Amarillo, TX KMML-FM KMXJ-FM Anchorage, AK KASH-FM Atlanta, GA WSTR-FM Augusta, GA WIBL-FM WBBQ-FM Austin, TX KVET-FM Bakersfield, CA KBKO-FM Baltimore, MD WWMX-FM Bangor, ME WKSQ-FM Baton Rouge, LA WNXX-FM WTGE-FM KNXX-FM WYPY-FM WDGL-FM Beaumont, TX KAYD-FM Beckley, WV WCIR-FM Binghamton, NY WHWK-FM WAAL-FM WNBF-AM WWYL-FM Birmingham, AL WMJJ-FM Boise, ID KQFC-FM Boston, MA WBMX-FM Bozeman, MT KZMY-FM Brandon, MB CKX-FM CKXA-FM Brookings, SD KKQQ-FM KBRK-FM Bryan-College Station, TX KNDE-FM Buffalo, NY WKSE-FM Burlington, VT WOKO-FM Calgary, AB CKRY-FM Cedar Rapids, IA KHAK-FM Charleston, SC WIHB-FM Charlotte, NC WLYT-FM Charlottesville, VA WHTE-FM WCYK-FM WCJZ-FM WSUH-FM Chattanooga, TN WNGA-FM WKXJ-FM WRXR-FM Chicago, IL WTMX-FM WOJO-FM Cincinnati, OH WYGY-FM WRRM-FM Cleveland, OH WMVX-FM Columbia, SC WTCB-FM Columbia, MO Zimmer radio Columbus, GA WKCN-FM Columbus, OH WSNY-FM Corpus Christi, TX KRYS-FM Dallas, TX KVIL-FM Davenport, IA KMXG-FM Dayton, OH WHKO-FM Des Moines, IA KSTZ-FM Denver, CO KALC-FM Detroit, MI WNIC-FM Dothan, AL WESP-FM WDBT-FM WDJR-FM Dublin, GA WQZY-FM Dublin, Ireland 98FM Dubuque, IA KLYV-FM Duluth, MN KTCO-FM Edmonton, AB CISN-FM CHQT-AM CHED-AM CKNG-FM El Paso, TX KTSM-FM Elmira, NY WNKI-FM Erie, PA WJET-AM WFGO-FM Evansville, IN WIKY-FM Eugene, OR KODZ-FM Fargo, ND WDAY-FM Fayetteville, AR KMCK-FM Florence-Muscle Shoals, AL WMSR-FM WLAY-AM WLAY-FM WMXV-FM WVNA-AM WVNA-FM Florence, SC WEGX-FM WDAR-FM Fredericksburg, VA WFLS FM Fresno, CA KSKS-FM Ft. Wayne, IN WAJI-FM Gainesville, FL WKTK-FM WSKY-FM Garden City, KS KFXX-FM KSKG-FM KKJQ-FM Grand Rapids, MI WOOD-FM Great Bend, KS KBGL-FM KHOK-FM KVGB FM KVGB-AM Green Bay-Appleton, WI WECB WAPL-FM WHBY-AM WKSZ-FM Greenville, NC WNCT-FM Greenville, SC WESC-FM WBZT-FM WMYI-FM Halifax, NS CIOO-FM CJCH-AM Hamilton, ON CHAM-AM CKLH-FM CKOC-AM Harrisburg, PA WMHX-FM WCAT-FM Hartford-New Haven, CT WDRC-FM Helena, MT KZMT-FM KBLL-AM KBLL-FM KHKR-FM KCAP-AM Indianapolis, IN WFMS-FM Jackson, MS WIIN-AM WJKK-FM WYOY-FM WUSJ-FM Jackson, TN WWYN-FM Jacksonville, FL WAPE-FM Joplin, MO KSYN-FM KIXQ-FM KJMK-FM KXDG-FM Kansas City, MO KMXV-FM Kelowna, BC CILK-FM Knoxville, TN WWST-FM La Crosse, WI KQEG-FM WLXR-FM WQCC-FM WLFN-AM Lafayette, IN WKOA-FM Lake Charles, LA KNGT-FM KHLA-FM Lancaster, PA WIOV-FM Lansing, MI WVIC-FM Lexington, KY WLXX-FM Little Rock, AR KURB-FM Lincoln, NE KZKX-FM London, ON CJBK-AM CJBX-FM CIQM-FM Los Angeles, CA KBIG-FM Lubbock, TX KLLL-FM Macon, GA WPEZ-FM Madison, SD KJAM-FM Madison, WI WZEE-FM Medford, OR KLDZ-FM Mobile, AL WMXC-FM Moncton, NS CJMO-FM CJXL-FM Montgomery, AL WMXS-FM Montreal, QC CJAD-AM CJFM-FM Morgantown, WV WVAQ-FM Memphis, TN WMC-FM Milwaukee, WI WKLH-FM Minneapolis-St.Paul, MN KSTP-FM Montreal, QC CHOM-FM Nashville, TN WRVW-FM Natchez, MS WQNZ-FM KTGV-FM WKSO-FM WNAT-AM New Orleans, LA WEZB-FM WLMG-FM WSMB-AM WTKL-FM WWL-AM WKBU-FM Odessa-Midland, TX KHKX-FM KQRX-FM KTXC-FM Oklahoma City, OK KXXY-FM Omaha, NE KXKT-FM Orlando, FL WMGF-FM Ottawa, ON CKQB-FM CKBY-FM Pensacola, FL WXBM-FM Panama City, FL WYYX-FM WYOO-FM WVVE-FM WPCF-AM WILN-FM Peoria, IL WPBG-FM Philadelphia, PA WOGL-FM Phoenix, AZ KMLE-FM Portland, OR KWJJ-FM Portland, ME WFNK-FM Pottsville, PA WAVT-FM Prince George, BC CKDV-FM Raleigh-Durham, NC WRAL-FM Regina, SK CFWF-FM CHMX-FM CKRM-AM Richmond-Petersburg, VA WMXB-FM Roanoke, VA WSLQ-FM WSLC-FM Rochester, NY WVOR-FM Sacramento, CA KWOD-FM KSEG-FM KDND-FM KRXQ-FM KSSJ-FM Saginaw, MI WIOG-FM Salinas, CA KOCN-FM Salina, KS KQNS-FM KILS-FM San Angelo, TX KWFR-FM KIXY-FM San Antonio, TX KXTN-FM San Diego, CA KUSS-FM KLSD-AM KMYI-FM San Francisco-Oakland, CA KSAN-FM Saskatoon, SK CJMK-FM Savannah, GA WGZO-FM WGZR-FM Seattle-Tacoma, WA KBKS-FM Seymour, IN WQKC-FM WZZB-AM Sprinfield, IL WDBR-FM Sioux City, IA KGLI-FM Sioux Falls KTWB-FM Spokane, WA KIXZ-FM Springfield, MO KOMG-FM Springfield-Holyoke, MA WMAS-AM WMAS-FM State College, PA WBHV-FM St. John s, NF CKSJ-FM St. Louis, MO KEZK-FM Sunbury, PA WQKX-FM WKOK-AM Syracuse, NY WSYR-AM WYYY WBBS-FM WWHT-FM Tallahassee, FL WTLY-FM Temple, TX KUSJ-FM Thompson, MB CHTM-AM Toronto, ON CJEZ-FM CKFM-FM CFRB-AM Tri-Cities, TN WAEZ-FM Tucson, AZ KRQQ-FM Tuscaloosa, AL WTXT-FM Tupelo, MS WWZD-FM Tyler-Longview, TX KMOO-FM Tyler, TX KTYL-FM Utica, NY WLZW-FM Vancouver, BC CKZZ-FM CISL-AM CISL-FM CFMI-FM Victoria, BC CIOC-FM Virginia Beach, VA WPTE-FM Washington, DC WMMJ-FM WKYS-FM WASH-FM Watertown, NY WBDI-FM Watertown, SD KSDR-FM KSDR-AM Wausau, WI WYTE-FM Westchester, NY WHUD-FM West Palm Beach, FL WRMF-FM Wichita Falls, TX KOLI-FM KLUR-FM Wichita, KS KZSN-FM Wilkes Barre-Scranton, PA WMGS-FM Williamsport, PA WKSB-FM Winnipeg, MB CKMM-FM CFQX-FM Yakima, WA KZTA-FM KZTS-AM KZTB-FM KYXE-AM KIT-AM Youngstown, OH WHOT-FM 21 Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 22

14 Children s Miracle Network Sponsors INTERNATIONAL SPONSORS Wal-Mart Stores, Inc. Foresters RE/MAX International Marriott International, Inc. International Dairy Queen Blockbuster U.S. SPONSORS Credit Unions for Kids The American Legion Dance Marathon Rite Aid Corporation SAM S CLUB Food Lion, Inc. ACE Hardware Corporation Giant Food Stores Speedway SuperAmerica, LLC Log A Load for Kids Brooks / Eckerd Pharmacy Goody s Family Clothing CO-OP Financial Services The Kroger Company McLane Company, Inc. Valero Energy Company, Inc. Coca-Cola North America Delta Air Lines Crossmark Papa John s International, Inc. The Walt Disney Company Kiwanis & Key Club Publix Super Markets UNDERWRITERS News America American Amusement Machine Association FUND RAISING PARTNERS Newman s Own Carmike Cinemas General Growth Properties Phi Mu Fraternity HMS Host Auntie Anne s Circle K Midwest Golden Corral Sigma Chi Fraternity Love s Travel Stops Pathmark Stores Sunoco Laidlaw Education Services BP Amoco Express Personnel Services WAWA Kinney Drugs Great Clips USA Gymnastics Dailey s C-Stores Turkey Hill Chevron Products Company SSP Spectrum Sigma Alpha Epsilon CEFCO American Home Mortgage Irving Oil Brookshire Dillons Phi Kappa Theta Outback Steakhouse Zeta Beta Tau Hy-Vee Food Stores The Hershey Company Fred s Discount Stores FTD.com Mobil Phi Delta Epsilon Money Mailer Golf Galaxy IHOP Corporation Panda Express Canada SPONSORS Air Canada Kids Horizons Blockbuster Canada Inc. Costco Wholesale Dairy Queen Canada Inc Foresters Laidlaw Education Services Microsoft XBox Canada Co PartyLite RE/MAX Swiss Chalet TD Bank Financial Group Marriott Hotels of Canada Toys R Us Canada Wal-Mart Canada Corp. Children s Miracle Network 2006 Annual Report 24

15 2006 Financial Statements 2006 Financial Statements INDEPENDENT AUDITORS REPORT To the Board of Trustees of Osmond Foundation for the Children of the World and Subsidiaries, dba Children s Miracle Network: We have audited the accompanying statements of financial position of Osmond Foundation for the Children of the World and Subsidiaries, dba Children s Miracle Network ( Children s Miracle Network ) as of August 31, 2006 and 2005, and the related statements of activities and of cash flows for the years then ended. These financial statements are the responsibility of Children s Miracle Network s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted 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 the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Children s Miracle Network s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of Children s Miracle Network at August 31, 2006 and 2005, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of functional expenses for the year ended August 31, 2006, is presented for the purpose of additional analysis and is not a required part of the basic 2006 financial statements. This schedule is the responsibility of the Children s Miracle Network s management. Such supplemental schedule has been subjected to the auditing procedures applied in our audit of the basic 2006 financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic 2006 financial statements taken as a whole. November 16, Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 26

16 2006 Financial Statements 2006 Financial Statements 27 Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 28

17 2006 Financial Statements 2006 Financial Statements 29 Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 30

18 2006 Financial Statements 2006 Financial Statements 31 Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 32

19 2006 Financial Statements 2006 Financial Statements 33 Children s Miracle Network 2006 Annual Report Children s Miracle Network 2006 Annual Report 34

20 4525 South 2300 East Salt Lake City, Utah FAX Steeles Ave. West, Suite C18 Woodbridge, Ontario L4L 3S FAX

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