PUBLIC HEALTH MANAGEMENT CORPORATION EMPLOYEES MONEY PURCHASE PENSION PLAN

Transcription

1 PUBLIC HEALTH MANAGEMENT CORPORATION EMPLOYEES MONEY PURCHASE PENSION PLAN FINANCIAL STATEMENTS JUNE 30, 2012 AND 2011 (with supplemental information)

2 Contents Page Financial Statements Independent auditors report 1 Statements of net assets available for benefits as of June 30, 2012 and Statement of changes in net assets available for benefits for the year ended June 30, Notes to financial statements 4 Supplemental Information Schedule of assets (held at end of year) as of June 30,

3 INDEPENDENT AUDITORS REPORT To the Board of Trustees and Participants of Public Health Management Corporation Employees Money Purchase Pension Plan We were engaged to audit the accompanying statements of net assets available for benefits of Public Health Management Corporation Employees Money Purchase Pension Plan (the Plan ) as of June 30, 2012 and 2011, the related statement of changes in net assets available for benefits for the year ended June 30, 2012, and the supplemental schedule of assets (held at end of year) as of June 30, These financial statements and supplemental schedule are the responsibility of the Plan's management. As permitted by 29 CFR of the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 ( ERISA ), the Plan administrator instructed us not to perform, and we did not perform, any auditing procedures with respect to the information discussed in Note C, which was certified by entities in the Principal Financial Group ( Principal ), except for comparing such information with the related information included in the financial statements and supplemental schedule. We have been informed by the Plan administrator that Principal holds the Plan's investment assets and executes investment transactions. The Plan administrator has obtained a certification from Principal as of June 30, 2012 and 2011 and for the year ended June 30, 2012 that the information provided to the Plan administrator by Principal is complete and accurate. Because of the significance of the information that we did not audit, we are unable to, and do not, express an opinion on the accompanying financial statements and supplemental schedule taken as a whole. The supplemental schedule is presented for the purpose of additional analysis and is not a required part of the financial statements, but is required by the Department of Labor s Rules and Regulations for Reporting and Disclosure under ERISA. The form and content of the information included in the financial statements and supplemental schedule, other than that derived from the information certified by Principal, have been audited by us in accordance with auditing standards generally accepted in the United States of America and, in our opinion, are presented in compliance with the Department of Labor's Rules and Regulations for Reporting and Disclosure under ERISA. Jenkintown, Pennsylvania April 1, 2013

4 EMPLOYEES' MONEY PURCHASE PENSION PLAN Statements of Net Assets Available for Benefits ASSETS 2012 June Investments: Pooled separate accounts $ 17,031,577 $ 16,671,373 Mutual funds 12,039,758 13,470,612 Guaranteed interest contracts 348, ,965 Total investments 29,419,991 30,476,950 Employer contributions receivable 596, ,242 NET ASSETS AVAILABLE FOR BENEFITS $ 30,016,933 $ 31,014,192 See notes to financial statements 2

5 EMPLOYEES' MONEY PURCHASE PENSION PLAN Statement of Changes in Net Assets Available for Benefits Year Ended June 30, 2012 Investment income: Net depreciation in fair value of mutual funds $ (75,549) Net appreciation in fair value of pooled separate accounts 150,791 Net depreciation in fair value of guaranteed interest contracts (636) Interest and dividends 206, ,904 Employer contributions 2,768,474 Rollover contributions 31,694 2,800,168 Benefits paid to participants Administrative expenses (4,057,518) (20,813) (4,078,331) Net decrease (997,259) Net assets available for benefits: Beginning of year 31,014,192 End of year $ 30,016,933 See notes to financial statements 3

6 Notes to Financial Statements June 30, 2012 and 2011 NOTE A - PLAN DESCRIPTION The following description of the Public Health Management Corporation Employees Money Purchase Pension Plan (the Plan ) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan s provisions. [1] General: The Plan is a defined-contribution money purchase pension plan covering substantially all employees of Public Health Management Corporation, Interim House, Inc., Resources for Children s Health, CHANCES, Forensic Family Therapy Treatment Program, National Nursing Centers Consortium, Hill Creek Health Center, La Comunidad Hispana, Inc. and Health Promotion Council (collectively referred to as the Company or Employer ) who completed 1,000 hours of service during the fiscal year. Effective for employees hired after June 30, 1997, employees must complete a year of service before entering the Plan. The Plan also covers employees who become permanently disabled or terminate employment during the fiscal year, provided that a contribution was made for the participant in the preceding Plan year. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ( ERISA ). Principal Financial Group ( Principal ) is the custodian and third-party administrator of the Plan. [2] Plan amendments: A Plan amendment was executed on July 1, Under the amendment, employment with the organization, Regional Task Force, is treated as employment with the Company. An additional plan amendment was executed on July 1, Under the amendment, the affiliation between Public Health Management Corporation and La Comunidad Hispana, Inc. ( LCH ) was terminated effective July 1, All employees of LCH who are active participants in the Plan as of July 1, 2010, will be 100% vested. [3] Employer contributions: Effective July 1, 2006, the amount of the Employer contribution for each eligible person who was hired on or after July 1, 2006 and who has not completed five years of vesting service, shall be equal to 6% of the participant s compensation. The amount of the Employer contribution for each eligible person hired prior to July 1, 2006 shall be equal to 9% of the participant s compensation. A participant receiving a contribution of 6% is eligible to receive a contribution of 9% after completing five years of vesting service. In addition, the Employer shall make an Employer contribution of 5% of annual compensation in excess of the integration level as of the last day of the Plan year. The minimum funding requirements have been met for the Plan years ended June 30, 2012 and [4] Participant accounts: Participants are provided with a selection of investments within pooled separate accounts and guaranteed interest contracts managed by the custodian and mutual funds of various registered investment companies in which to invest contributions. Each participant s account is credited or charged with an allocation of (1) the Company s contributions, (2) the Plan s earnings and losses, and (3) administrative expenses. Allocations are based upon a participant s earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant s vested account. 4

7 Notes to Financial Statements June 30, 2012 and 2011 NOTE A - PLAN DESCRIPTION (CONTINUED) [5] Vesting: Participant vesting is based on years of continuous service as follows: Years of Service Vested Percentage Less than 2 0% 2 but less than 3 20% 3 but less than 4 40% 4 but less than 5 60% 5 and over 100% A participant is 100% vested upon (1) reaching retirement age, (2) becoming disabled, (3) the completion of five or more years of credited service, or (4) being an employee of LCH and an active participant in the Plan as of July 1, [6] Notes receivable from participants: The Plan does not provide for loans to participants. [7] Payment of benefits: Upon termination of service, a participant may receive either a lump-sum amount equal to the value of his or her vested account; a qualified annuity, with installments payable over a period of time which shall not exceed the life expectancy of the participant and a surviving spouse; or other alternative modes of payment permitted by law. The Plan administrator may elect to authorize an automatic lump-sum distribution for terminated participants whose vested account balances are less than $5,000. [8] Forfeitures: Forfeited nonvested accounts are used to reduce future contributions by the Company. During the year ended June 30, 2012, forfeitures of $310,982 were used to reduce Employer contributions. As of June 30, 2012 and 2011, forfeited nonvested accounts totaled $200,074 and $359,980, respectively. 5

8 Notes to Financial Statements June 30, 2012 and 2011 NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [1] Basis of accounting: The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ( U.S. GAAP ). Guaranteed interest contracts with an insurance company are not fully benefit-responsive investment contracts and are presented at fair value based upon the value when each contract is discontinued. The real estate pooled separate account is stated at estimated fair value based upon appraised market value. The Plan s other pooled separate account investments are stated at estimated fair value as determined by the market value of the underlying assets, which represent the net asset value of shares held by the Plan at year-end. Some of these investments, which are similar to mutual funds, may be in stocks, bonds or other types of investments. The Plan s investments in mutual funds are stated at fair value as determined by quoted market prices, which represent the net asset value of shares held by the Plan at year-end. [2] Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan administrator to make estimates and assumptions that affect the reported amounts of assets and liabilities and, when applicable, disclosure of contingent assets and liabilities at the date of the financial statements and the changes in net assets available for benefits during the reporting period. Actual results could differ from those estimates. [3] Investment valuation and income recognition: The Plan s investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note E for discussion of fair value measurements. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation (depreciation) in fair value of investments includes the Plan s gains and losses on investments bought and sold as well as held during the year. [4] Plan expenses: Certain expenses of the Plan are paid by the Company; remaining expenses are paid by the Plan. [5] Benefit payments: Benefits are recorded when paid. 6

9 Notes to Financial Statements June 30, 2012 and 2011 NOTE C - INVESTMENT CERTIFICATION The Plan administrator has elected the method of compliance permitted by 29 CFR of the Department of Labor s Rules and Regulations for Reporting and Disclosure under ERISA. Accordingly, as permitted under such election, entities in the Principal Financial Group have certified to the completeness and accuracy of all investments and related activity in the accompanying statements of net assets available for benefits as of June 30, 2012 and 2011, the statement of changes in net assets available for benefits for the year ended June 30, 2012 and the supplemental schedule of assets (held at end of year) as of June 30, NOTE D - INVESTMENTS The following investments represent 5% or more of the Plan s net assets shown at fair value as of June 30, 2012 and 2011: Principal Money Market Separate Account $ 3,694,594 $ 3,769,730 Principal Bond and Mortgage Separate Account 2,905,247 2,803,313 Principal Lifetime 2040 Separate Account 1,756,946 * Principal Diversified International Separate Account 1,501,567 1,886,686 Vanguard Wellington Admiral Fund 2,116,046 2,582,790 Vanguard Windsor II Admiral Fund 2,708,896 2,877,614 * Represents less than 5% of the Plan s net assets During the year ended June 30, 2012, the Plan s investments (including investments bought, sold and held during the year) appreciated (depreciated) in value as follows: Pooled separate accounts $ 150,791 Mutual funds (75,549) Guaranteed interest contracts (636) $ 74,606 NOTE E - FAIR VALUE MEASUREMENTS Financial Accounting Standards Board ( FASB ) Accounting Standards Codification ( ASC ) 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements), and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. 7

10 Notes to Financial Statements June 30, 2012 and 2011 NOTE E - FAIR VALUE MEASUREMENTS (CONTINUED) Level 2 Inputs to the valuation methodology include (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in inactive markets; (3) inputs other than quoted prices that are observable for the asset or liability; or (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. In January 2010, FASB issued ASU No , Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements. FASB ASU No , among other things, requires purchases, sales, issuances, and settlements be presented on a gross basis for Level 3 measurements and is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Adoption of FASB ASU No did not have a significant impact on the Plan s financial statements. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used as of June 30, 2012 and Mutual funds - Valued at the net asset value of the shares held by the Plan at year-end. Guaranteed interest contracts Valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the creditworthiness of the issuer. Pooled separate accounts Valued at net asset value based on the market value of the underlying investments. The net asset value is not a publicly-quoted price in an active market. The pooled separate accounts are comprised of a wide variety of underlying investments such as equities, preferred stock, bonds, real estate and mutual funds. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. 8

11 Notes to Financial Statements June 30, 2012 and 2011 NOTE E - FAIR VALUE MEASUREMENTS (CONTINUED) The following tables set forth by level, within the fair value hierarchy, the Plan s assets at fair value as of June 30, 2012 and 2011: June 30, 2012 Investment Assets at Fair Value as of Level 1 Level 2 Level 3 Total Investments: Mutual funds: Large U.S. Equity $ 5,543,771 $ - $ - $ 5,543,771 Small/Mid U.S. Equity 2,994, ,994,056 International Equity 28, ,552 Balanced/Asset Allocation 2,116, ,116,046 Fixed Income 1,264, ,264,691 Short-Term Fixed Income 92, ,642 Pooled separate accounts: Large U.S. Equity - 1,263,287-1,263,287 Small/Mid U.S. Equity - 541, ,202 International Equity - 1,501,567-1,501,567 Balanced/Asset Allocation - 5,955,532-5,955,532 Short-Term Fixed Income - 3,694,594-3,694,594 Fixed Income - 4,075,395-4,075,395 Guaranteed interest contracts , ,656 Total investment assets at fair value $ 12,039,758 $ 17,031,577 $ 348,656 $ 29,419,991 9

12 Notes to Financial Statements June 30, 2012 and 2011 NOTE E - FAIR VALUE MEASUREMENTS (CONTINUED) Investment Assets at Fair Value as of June 30, 2011 Level 1 Level 2 Level 3 Total Investments: Mutual funds: Large U.S. Equity $ 5,998,436 $ - $ - $ 5,998,436 Small/Mid U.S. Equity 3,478, ,478,792 International Equity 30, ,541 Balanced/Asset Allocation 2,582, ,582,790 Fixed Income 1,367, ,367,644 Short-Term Fixed Income 12, ,409 Pooled separate accounts: Large U.S. Equity - 1,274,899-1,274,899 Small/Mid U.S. Equity - 637, ,055 International Equity - 1,886,686-1,886,686 Balanced/Asset Allocation - 4,983,359-4,983,359 Short-Term Fixed Income - 3,769,730-3,769,730 Fixed Income - 4,119,644-4,119,644 Guaranteed interest contracts , ,965 Total investment assets at fair value $ 13,470,612 $ 16,671,373 $ 334,965 $ 30,476,950 Level 3 gains and losses: The following table presents changes in assets measured at fair value using Level 3 inputs on a recurring basis for the year ended June 30, 2012: Level 3 Assets for the Year Ended June 30, 2012 Guaranteed Interest Contracts Beginning balance $ 334,965 Unrealized losses relating to assets still held as of June 30, 2012 (636) Interest 1,891 Purchases 223,988 Sales (211,552) Ending balance $ 348,656 10

13 Notes to Financial Statements June 30, 2012 and 2011 NOTE E - FAIR VALUE MEASUREMENTS (CONTINUED) Changes in fair value levels: The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. The Plan administrator evaluated the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total net assets available for benefits. For the year ended June 30, 2012, there were no significant transfers into or out of Levels 1, 2 or 3. NOTE F - GUARANTEED INTEREST CONTRACTS The Plan has entered into the following guaranteed interest contracts with Principal Life Insurance Company: Average Yield and Crediting Effective Date Years Interest Rate July 1, % July 1, % July 1, % Principal Life Insurance Company maintains the contributions in a pooled account. The account is credited with earnings on the underlying investments and charged for Plan withdrawals and administrative expenses charged by Principal Life Insurance Company. The contracts are included in the financial statements at fair value, since they are not fully benefit-responsive investment contracts. The fair value of the investment contracts (which represents contributions made under the contracts, plus earnings, less withdrawals and administrative expenses) as of June 30, 2012 and 2011 was $348,656 and $334,965, respectively. There are no reserves against contract value for credit risk of the contract issuer or otherwise. The crediting interest rates are based on an agreed-upon formula with the issuer. NOTE G - RELATED PARTY TRANSACTIONS Certain investments consist of pooled separate accounts and guaranteed interest contracts with Principal Life Insurance Company. Another of the Principal Financial Group entities is the custodian of the mutual fund investments. Therefore, transactions related to all of these investments qualify as party-in-interest transactions. Fees paid by the Plan were $20,813 for the year ended June 30, The Company also pays some of the Plan expenses to Principal. 11

14 Notes to Financial Statements June 30, 2012 and 2011 NOTE H - TAX STATUS The Internal Revenue Service ( IRS ) has determined and informed the Company, by a letter dated April 4, 2002, that the Plan, as then designed, and related trust were in compliance with applicable sections of the Internal Revenue Code ( IRC ). The Plan has been amended since receiving the determination letter. In a letter dated January 31, 2011, the Company applied for a new determination letter under the current amendments to the Plan. As of June 30, 2012, a response had not yet been received. However, the Plan administrator and management believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. Accordingly, the accompanying financial statements do not include a provision for income taxes (see Note L). Accounting principles generally accepted in the United States of America require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by a government authority. The Plan administrator has analyzed the tax positions taken by the Plan and has concluded that, as of June 30, 2012, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements. The Plan is subject to routine examinations by taxing jurisdictions; however, there are currently no examinations for any tax periods in progress. The Plan administrator believes the Plan is no longer subject to income tax examinations for fiscal years prior to NOTE I - PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants would become 100% vested in their accounts. NOTE J - RISKS AND UNCERTAINTIES The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risk, as well as risk related to the financial strength of the insurance company. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statements of net assets available for benefits. Users of these financial statements should be aware that the financial markets' volatility may significantly impact the subsequent valuation of the Plan's investments. Accordingly, the valuation of the investments as of June 30, 2012 may not necessarily be indicative of amounts that could be realized in a current market exchange. 12

15 Notes to Financial Statements June 30, 2012 and 2011 NOTE K - MUTUAL FUND FEES Investments in mutual funds are subject to sales charges in the form of front-end loads, back-end loads or 12b-1 fees, which are ongoing fees allowable under Section 12b-1 of the Investment Company Act of These annual fees are deducted to pay for marketing and distribution costs of the funds. These fees are deducted prior to the allocation of the Plan s investment earnings activity and thus not separately identifiable as an expense. NOTE L - SUBSEQUENT EVENTS The Plan has evaluated subsequent events through April 1, 2013, which is the date the financial statements were available to be issued. The Company received the Plan s new determination letter on October 12, The IRS informed the Company that the Plan, as then designed, and related trust were in compliance with applicable sections of the IRC.. 13

16 SUPPLEMENTAL INFORMATION

17 EMPLOYEES' MONEY PURCHASE PENSION PLAN EIN Plan Number 001, Form 5500 Schedule H, Line 4i Schedule of Assets (Held at End of Year) June 30, 2012 (a) (b) Identity of Issuer (c) Description of Investment (e) Current Value Insurance company general: * Principal Life Insurance Company Guaranteed Interest Contracts $ 348,656 Pooled separate accounts: * Principal Life Insurance Company Principal Bond and Mortgage Separate Account 2,905,247 Principal Diversified International Separate Account 1,501,567 Principal Financial Group, Inc. Stock Separate Account 111,769 Principal Large-Cap S&P 500 Index Separate Account 1,263,287 Principal Lifetime 2010 Separate Account 461,568 Principal Lifetime 2020 Separate Account 1,378,777 Principal Lifetime 2030 Separate Account 1,311,188 Principal Lifetime 2040 Separate Account 1,756,946 Principal Lifetime 2050 Separate Account 966,366 Principal Lifetime Strategic Income Separate Account 80,687 Principal Mid-Cap S&P 400 Index Separate Account 15,945 Principal Money Market Separate Account 3,694,594 Principal Small Cap S&P 600 Index Separate Account 12,807 Principal Small-Cap Blend Separate Account 512,450 Principal U.S. Property Separate Account 1,058,379 17,031,577 Mutual funds: AIM Invesco Real Estate A Fund 46,250 American Century Small-Cap Value Inv Fund 1,151,303 American Century Equity Income A Fund 572,953 American Century Small Cap Growth A Fund 694,957 Columbia Mid-Cap Value A Fund 165,568 Fidelity Advisors Mid-Cap I Fund 935,978 John Hancock Rainer Growth A Fund 1,084,475 Neuberger Berman Socially Responsible Trust Fund 1,177,447 Oppenheimer Developing Markets A Fund 28,552 PIMCO Low Duration A Fund 92,642 PIMCO Real Return A Fund 77,338 Vanguard Wellington Admiral Fund 2,116,046 Vanguard Windsor II Admiral Fund 2,708,896 Vanguard Health Care Admiral Fund 1,187,353 12,039,758 $ 29,419,991 * Denotes a party-in-interest, as defined by ERISA 14

18 SCHEDULE H, line 4i SCHEDULE OF ASSETS (HELD AT END OF YEAR) CGS2339 ANNUITY CONTRACT NUMBER /07/13 SCHEDULE H, line 4i SCHEDULE OF ASSETS (HELD AT END OF YEAR) F051TF PUBLIC HEALTH MANAGEMENT CORPORATION EMPLOYEE PLAN EIN PLAN NUMBER 001 PLAN YEAR 07/01/2011 TO 06/30/2012 (E) Current Value (D) Cost (C) (B) (A) Description of investment including maturity date, rate of interest, collateral, par or maturity value. Identity of issuer, borrower, lessor or similar party. American Century Investments Am Cent Sm Cap Growth A Fund $ 0.00 $ 694, American Century Investments Amer Cent Equity Inc A Fd $ 0.00 $ 572, American Century Investments Amer Cent Sm Cp Value Inv Fund $ 0.00 $ 1,151, Columbia Funds Columbia MidCap Value A Fund $ 0.00 $ 165, Fidelity Investments Fidelity Adv Stk Sel MdCp I Fd $ 0.00 $ 935, Insurance Company General * Principal Life Insurance Company Guaranteed Interest $ 0.00 $ 348, AIM Investments Invesco Real Estate A Fund $ 0.00 $ 46, John Hancock JH Rainier Growth A Fund $ 0.00 $ 1,084, Neuberger Berman Management Neub Berm Soc Resp Tr Fund $ 0.00 $ 1,177, Oppenheimer Oppen Developing Mkts A Fund $ 0.00 $ 28, * Principal Life Insurance Company Prin Bond and Mortgage SA-R6 $ 0.00 $ 2,905, * Principal Life Insurance Company Prin Diversified Intl SA-R6 $ 0.00 $ 1,501, * Principal Life Insurance Company Prin Fin Grp, Inc. Stock SA-R6 $ 0.00 $ 111, * Principal Life Insurance Company Prin LgCap S&P 500 Index SA-R6 $ 0.00 $ 1,263, * Principal Life Insurance Company Prin LifeTime Strat Inc SA-R6 $ 0.00 $ 80,686.61

19 SCHEDULE H, line 4i SCHEDULE OF ASSETS (HELD AT END OF YEAR) SCHEDULE H, line 4i SCHEDULE OF ASSETS (HELD AT END OF YEAR) PUBLIC HEALTH MANAGEMENT CORPORATION EMPLOYEE PLAN EIN PLAN NUMBER 001 PLAN YEAR 07/01/2011 TO 06/30/2012 (A) (B) Identity of issuer, borrower, lessor or similar party. (C) Description of investment including maturity date, rate of interest, collateral, par or maturity value. (D) Cost (E) Current Value * Principal Life Insurance Company Prin LifeTime 2010 Sep Acct-R6 $ 0.00 $ 461, * Principal Life Insurance Company Prin LifeTime 2020 Sep Acct-R6 $ 0.00 $ 1,378, * Principal Life Insurance Company Prin LifeTime 2030 Sep Acct-R6 $ 0.00 $ 1,311, * Principal Life Insurance Company Prin LifeTime 2040 Sep Acct-R6 $ 0.00 $ 1,756, * Principal Life Insurance Company Prin LifeTime 2050 Sep Acct-R6 $ 0.00 $ 966, * Principal Life Insurance Company Prin MidCap S&P 400 Idx SA-R6 $ 0.00 $ 15, * Principal Life Insurance Company Prin Money Market Sep Acct-R6 $ 0.00 $ 3,694, * Principal Life Insurance Company Prin SmCap Blend Sep Acct-R6 $ 0.00 $ 512, * Principal Life Insurance Company Prin U.S. Property Sep Acct-R6 $ 0.00 $ 1,058, PIMCO Funds PIMCO Low Duration A Fd $ 0.00 $ 92, PIMCO Funds PIMCO Real Return A Fund $ 0.00 $ 77, * Principal Life Insurance Company PRIN SMCAP S&P 600 INDEX SA-R6 $ 0.00 $ 12, Vanguard Group Vanguard Health Care Adm Fd $ 0.00 $ 1,187, Vanguard Group Vanguard Wellington Adm Fund $ 0.00 $ 2,116, Vanguard Group Vanguard Windsor II Adm Fund $ 0.00 $ 2,708, F051TF

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