Bringing out the best. 2013 Annual Report

Mission Positive Education Program helps troubled and troubling children learn and grow.

Vision PEP’s results-based wellness model makes PEP the expert for the delivery of integrated services to troubled and troubling children and their families. Recognized for its proven success, PEP contributes to national changes in its areas of expertise.

Programmatic Philosophy At PEP, our work with children and families is grounded in the Principles of Re-EDucation (Re-ED) and The Sanctuary Model. Re-ED, a child and family centered approach to care for children and youth facing mental health challenges, is an open paradigm that accentuates the strengths within each individual. The Sanctuary Model creates a safe, nurturing therapeutic environment that supports children and youth impacted by trauma. It helps them reorganize their self-defeating beliefs and instills hope for the future.

Instructions

3. Do whatever it takes to make it work.

1. Color inside the lines. There are times we need to work within the lines. This discipline helps children learn skills, develop core competencies and provides useful parameters.

2. Color outside the lines.

No matter the approach, the goal is the same – do whatever it takes to bring out the best in every child.

And there are other times where the answer lies outside the lines, requiring creative and new approaches to the challenges of the day.

We know that life has been a bit more difficult for the children we serve at Positive Education Program. Some struggle with mental health challenges, others with autism and other complex developmental disabilities. A result of these issues, they relate to the world in challenging ways. But at the heart of it all, they are children with terrific potential. We see it as our task to bring out the best in each and every one of them. It’s a team effort requiring the commitment of our skilled teacher-counselors, a working partnership with families and the support of a caring community. Add a whole lot of joy and love to the mix, and we have all the ingredients we need to create bright, colorful and fulfilling futures for children.

Choose your favorite colors. Have some fun. Fill inside the lines. Go outside the lines. Do whatever it takes to make it work. That’s how we do it at PEP!

Day Treatment Centers PEP Day Treatment Centers provide a specialized school and mental health environment for school-age children, the majority of whom have been identified with an emotional disturbance, autism and/or other complex developmental disabilities. These centers provide a therapeutic environment where there are expectancies for normal, healthy behavior; where competence is stressed; and where energy is focused on finding and building strengths that promote positive growth.

PEP Day Treatment Centers aim to prepare youth for success in school and life. After completing the program, 93% of school-age children are earning passing grades and 90% of parents tell us they are now hopeful about their children’s futures.

Early Childhood Plus Children receiving care through PEP Early Childhood Plus are experiencing significant social, emotional, behavioral and/or developmental challenges that are interfering with their daily living. Utilizing consultation, training and support services, PEP helps the child and the adults in the child’s life better manage those challenges so that these children will find success in school and in life.

Pre-school expulsions present serious challenges for a child’s development and a parent’s ability to maintain employment. Last year, PEP Early Childhood Plus was brought in to work with 427 children on the brink of expulsion, succeeding in preventing 99% of those children from being expelled.

Connections PEP Connections coordinates services for children and youth who are experiencing serious emotional difficulties and are determined to be at-risk for deeper system involvement and/or returning home or to the community from out of home placement. PEP Connections works with the child and everyone involved in the child’s life to create a plan of care aimed at helping the child access community supports and begin on a path to success.

Achieving success with PEP Connections youth depends on developing a positive and productive partnership with the child’s family. Last year, 99% of PEP Connections parents reported feeling that PEP staff treated them as a full partner, showing respect for their beliefs and values.

PEP Assist PEP Assist is a consulting and training service provided to schools and programs designed to teach best practices for working with at-risk and special needs children. Services are individually tailored to meet the unique needs of each district. Working in collaboration with public schools, PEP Assist staff develops innovative programs and staff development opportunities so that children with severe and challenging behaviors may be served successfully in their school of residence.

Serving children in the least restrictive environment is a Federally-mandated goal and an objective which is good for children. Last year, PEP Assist provided consultation services which allowed 93% of targeted students, all at risk for more restrictive placements, to be served in their home school district.

Public Partners and Philanthropists SCHOOLS Akron Public Schools Amherst Exempted Village Schools Avon Lake City Schools Avon Local Schools Bay Village City Schools Beachwood City Schools Bedford City Schools Bellevue City Schools Berea City Schools Berkshire Local Schools Brecksville-Broadview Heights City Schools Brooklyn City Schools Brunswick City Schools Buckeye Local Schools Chardon Local Schools Cleveland Heights-University Heights City Schools Cleveland Metropolitan School District Cloverleaf Local Schools Columbia Local Schools Constellation Schools, LLC Copley-Fairlawn City Schools Cuyahoga Heights Schools East Cleveland City Schools Edison Local School District Educational Service Center of Lorain County Elyria City Schools Euclid City Schools Fairview Park City Schools Firelands Local Schools Garfield Heights City Schools Highland Local Schools Huron City Schools Independence Local Schools Kenston Local Schools Keystone Local Schools Kirtland Local Schools Lakewood City Schools Lorain City Schools Maple Heights City Schools Mayfield City Schools Medina City Schools Midview Local Schools Nordonia Hills City Schools North Olmsted City Schools

North Ridgeville City Schools North Royalton City Schools Norwalk City Schools Oberlin City Schools Olmsted Falls City Schools Orange City Schools Parma City Schools Perkins Local Schools Pinnacle Academy Richmond Heights Local Schools Rocky River City Schools Sandusky City Schools Shaker Heights City Schools Sheffield-Sheffield Lake City Schools South Euclid-Lyndhurst School District Stow-Munroe Falls City Schools Strongsville City Schools Twinsburg City Schools Vermilion Local Schools Warrensville Heights City Schools Wellington Exempted Village School District Western Reserve Local Schools Westlake City Schools Willoughby-Eastlake City Schools CHILD SERVING SYSTEMS Alcohol, Drug Addiction and Mental Health Services Board of Cuyahoga County Cuyahoga County Board of Developmental Disabilities Cuyahoga County Department of Children and Family Services Cuyahoga County Family and Children First Council Cuyahoga County Juvenile Court Cuyahoga County Office of Health and Human Services Cuyahoga County Tapestry System of Care Educational Service Center of Cuyahoga County Help Me Grow of Cuyahoga County Invest in Children, Office of Early Childhood Lorain County Board of Mental Health Ohio Department of Education Ohio Department of Mental Health Starting Point for Child Care and Early Education State Support Team – Region 3 United Way of Greater Cleveland

DONORS A Piece of Cleveland ADP Automatic Data Processing Laurie Albright American Endowment Foundation American Fence Company Sandra A. Ammar Tyler J. Anderson Dino Antenucci Applied Industrial Technologies Michele and David Arredondo Grace Arredondo Joyce and Joel Arredondo Russ Audino Karl and Arlene Bachert Mark Bacon Joseph A. Bagatti, Jr. BakerHostetler Nancy Barch Ellen Barkley Barrett Benefits Group, Inc. Bass Fineberg Leasing Vincent H. and Carol J. Bednar Beech Brook Benesch, Friedlander, Coplan & Aronoff LLP Ruth S. Berger Susan Berger and Robert Brown Susan H. Berk Bob Blair Nick Blair Ann and Terry Bowdish CJ Bowman Jessica and David Breslin Deborah A. Bridwell Sandy and Matthew Brinn Conner Brintlinger Broad and Cassel Michael P. Brown Brunswick Companies Burges and Burges: Strategists Business on the Move, LLC Marc Byrnes Matthew L. Byrnes Calfee, Halter & Griswold LLP Candlewood Partners, LLC Amy M. Cannon Cars.com Case Western Reserve University Bill and Judie Caster Cavitch, Familo & Durkin Chagrin Services, Inc. Change for Charity – Legacy Village Cinnamon and Brian Chivers Colin M. Christman David and Barbara Chuppa City Wide Maintenance of Cleveland Michael and Sue Clegg Shannon and Eric Cleis Cleveland Browns Cleveland Clinic Ronald B. Cohen Terralyn C. and Emil T. Colosimo ComDoc Community West Foundation Constant Aviation William E. Conway Mary Beth Cooper and Scott Chaikin Cornerstone Financial Consultants, LTD Margaret P. Coyne Julie and Jeff Cristal Cyprium Partners Faith and Anthony DaFonseca Stephen Daray Jeffrey R. Daro Maryellen S. Davis, M.D. DCT Telecom Group Robert A. DeAngelis

With the support and partnership of this caring community,

Dr. Garland and Ellen DeNelsky Todd Derbaum James Doglio Dominion East Ohio Nan Downs Senator Grace L. Drake Easton Telecom Services LLC The Eaton Charitable Fund David and Marie Mirro Edmonds Educational Service Center of Cuyahoga County Beth Embrescia Judith A. Embrescia Family Foundation Matthew and Chastity Embrescia Ernst & Young LLP Jim Fagan John T. Fagan Jane Gilles and Michael Fago Fairmount Minerals Juliann C. Fausel John A. Favret Frank and Mary Ellen Fecser Federal Process Corporation Melissa and Konrad Fellmann Fidelity Access Networks, LLC Donna and Dr. Karl B. Fife Brian and Suzie Fitzgerald Sally Florkiewicz Foley & Puls, Inc. Brian Fontanella Forest City Enterprises, Inc. Philla Mae Foss Charlotte A. and Charles D. Fowler Charles and Charlotte Fowler Family Foundation Daniel R. Freson Donna and Todd Friesner Helena and Vincent Gandolfi Anne E. Gannon Audra and Tom Garske Eileen Gaudiello Matthew C. Gentzel Tom and Amy Gilchrist Gary and Sharon Gillen Barry and Lana Ginnis Shari Goldberg M.A. and D.M. Graham Yvette C. Graham Anita Gray Peter and Mary Rita Grealis Ann Marie Grimberg and Joel Moyer William and Susan Grimberg The George Gund Foundation Jeffrey and Beth Gurney Mindalore Hamilton Gregory Hanna Janice and John Hanrahan Chuck and Kathie Hardin Carol and Herbert Harpster Elizabeth A. and Robert S. Harting Susan and Jeffery Hastings Henry R. Hatch Karry and Jonathan C. Hatch Lawrence Hatch David L. Hawkins Ellen and Christopher Hess Hill, Barth and King, LLC Brenda and David Hiser Lesley Homans Mr. and Mrs. Michael J. Horvitz Susan and Thomas Houlihan David Howard Howard Hanna Nancy and James C. Hyland Hyland Software, Inc. Robert and Lacretta Incorvaia Frances M. Johnson Ralph E. and Lisa B. Johnson Jones Day Philip Josephson David Kaminski Brian J. Kapsch Lenore L. Keene

Bernadette Kerrigan KeyBank Foundation Christian L. Kiec Tonia King Keith J. Kirschstein Constance M. Kittler Kevin R. Klein Knights of Columbus, Ohio State Council Dennis and Jill Koenig Donna and Stewart Kohl The Family of Brett Krantz William L. Kress Robert J. Krupka Robert J. Krupka, III Kevin and Leigh Kruszenski Casey Kundtz Jeanne and William Kurtz Patricia R. Kusinski Ashley Lance Michelle and Eric S. Lance Keith and Beth Laschinger Gilmour Academy Michelle and David A. Lehman Melinda J. Lenhard Dr. L. Douglas Lenkoski The Fred A. Lennon Charitable Trust Catharine M. Lewis Daniel and Maura Lipinski John Lisy Robert M. Littman Kim and Tom Littman Steve Lotz Ed and Cathy Lozick James E. Lucas Jenefer and Bryan Machovina The Madav IX Foundation Frank Mahnic Shana F. Marbury Dan Markson Jim Marra Christopher Marsh Valenna and John D. Marshall Sr. Holley and Robert Martens Tom Martin C. Massouh Printing Co., Inc. Mrs. Frederick S. McConnell Nylajean McDaniel, Ph.D. Megan and Ryan McLeod Megan McMahon Meaden & Moore Valorie Wolcott Mendelson Dr. Bob Mengerink Moskal Gross Orchosky Inc. Brice Milla Barbara R. and Abraham C. Miller Samuel and Maria Miller Cheryl and Keith Mitchell MNJ Technologies Direct Russ Monchein Mario and Dana Morino Julie Namy Nestle John and Karen Nestor Robert and Haide Neubert Neundorfer, Inc. Gilda Newman Nitelights of Cleveland Thomas and Mary Noeller John Nosek Novogradac & Company LLP The NRP Group LLC Sheila M. O’Donnell Ohio Sigma Home Co.

Terri Oldham Rose and Paul Orchosky Helen M. Oshaben Oswald Companies Katharine and David Outcalt Jane and Jon Outcalt Jon and Robin Outcalt Katie and Ken Outcalt Nick Pacione Joseph L. Palko J. Ward Pallotta Jon D. Palmiero Thomas A. Pappalardo Suzi Pettit Johannes Phelps Vincenzo Pierro A. L. Pina Dennis and Anita Pinciotti Pinetree Partners LLC PNC Wealth Management PNC Foundation Matching Gift Program Larry and Julia Pollock The Elisabeth Severance Prentiss Foundation Monyka S. Price John and Marybeth Primeau Project and Construction Services, Inc. Kimberly J. Pustulka Kimberly A. Radford Brian R. Radigan The Jonathan and Meg Ratner Family Foundation Mary and Todd Ray Andrew K. Rayburn Resilience Capital Partners Barb and Joe Restifo Bill and Judy Riter Miriam Robinson Rockwell Automation Shadi and Theresa Roman Ronald McDonald House Charities of Northeastern Ohio, Inc. Robert and Lauryn Ronis Enid and David Rosenberg Karen and Judd Roszman Margo and Bob Roth James Rutherford John and Delores Saada John and Eliza Saada David Sagerser and Christine Krol Mary and Patrick Schleitweiler Amy and Adam Schneier Bill and Dallas Schubert Jeffrey Schultz

Sally Reddig Schulze, Ph.D. Marsha and Clyde Scott Robert V. Secrist, Jr. Scott and Chloe Seelbach Nancy and Bill Seelbach Natalie Senra Mary Jane and John Sesek Rochelle and Allen Sevchek Ann E. Seward Jesse Shamp Ellen and George Shook Jeffrey G. Shook John Sikora Dale Slivinski Richard J. Slosar Sally A. Smith Patricia Smith Sandra and Kile Snyder Tamala J. and Richard L. Sobek Wilton and Nancy Sogg Randy Solomon and Nancy Glick Chann and Ed Spellman Squire Sanders (US) LLP SS & G Financial Services Inc. John B. Stein Jeffrey Stoppenhagen Calinda Stringer Superior Beverage Group Kiera and Jason W. Szytec The T1 Company, LLC Tellus Consulting, LLC L. Jack and Vicki Thomas Ronald Thomas Terence L. Thomas Today’s Business Products Virginia B. Toulmin Foundation The Treu-Mart Fund Shyam S. Tutukuri Ulmer & Berne LLP University Hospitals Health System University of Mount Union – Alumni US Bank/Private Client Group Claudia Lann Valore Thomas Valore, Ph.D. C. Van Ryckeghem – DeWulf James C. Varner Vocational Guidance Services Eric and Claire Waag David Walder Bridget Walker Sandy and Dave Waller Jerry Walsh, CPA Paulette and Jamess Walts Joelle Warsh Nancy Wasylyshyn Jason Weber Ronald and Terri Weinberg Morton J. Weisberg Richard Werner and Barbara Langhenry Sean Whalen Margie and John Wheeler Patricia R. White Laverne Whitworth Melissa and Timothy Wicinski Doug Wolfe Ronda Wolfe Woodruff Foundation Alice E. Worman Kristine and Maxwell K. Wright Amanda and John Yurechko Ed and Cristina Zukowski Seven Donors Wish To Remain Anonymous

PEP was able to bring out the best in 2,681 children and their families.

Financials



SOURCES OF REVENUE

School District Reimbursements Other Government Funding Federal Medicaid Reimbursements ADAMHS Board of Cuyahoga County Cuyahoga County Office of Early Childhood Federal National School Meals Program Philanthropy Private Philanthropy United Way of Greater Cleveland Other

Fees for Service Investment Income Other Revenue Loss on Disposal of Assets TOTAL SOURCES OF REVENUE

$27,810,819 8,067,937 4,369,991 350,115 330,239 13,118,282 335,999 120,446 456,445 37,383 16,882 15,934 (95,570) (25,371) $41,360,175

USES OF REVENUE

Personnel and Benefits Occupancy and Office/Site Operations Professional Fees and Contracted Services Client Assistance and Services Other Business Expenses

$34,346,256 2,945,326 1,407,039 1,227,060 1,123,908



$41,049,589

TOTAL USES OF REVENUE

The audit report for the year ended June 30, 2013 is available for inspection at our office. The audit was completed by Meaden & Moore, Ltd., Independent Auditors. Please see the Audited Financial Statements for complete financial information.

Board of Directors

Staff Leadership Team

EXECUTIVE COMMITTEE

DIRECTORS

CENTRAL OPERATIONS

William Caster Chair

Keith M. Bell Matthew Brinn Myrna Loy Corley Mark Dickinson William Grimberg Noreen Kilbane Thomas Littman Holley Martens Robert Mengerink, EdD* Kenneth W. Outcalt Kimberly J. Pustulka Monyka S. Price Robert Ronis, MD, MPH David A. Sagerser Scott Seelbach Michael Sheppard

Frank A. Fecser, PhD Chief Executive Officer

*ex-officio

Felicia Fago, PhD Educational Services Director

Robert DeAngelis Vice Chair Terence L. Thomas Treasurer Yvette Graham Secretary Brett S. Krantz At-Large Representative

Claudia Lann Valore Chief Program Officer Susan Berger Chief External Relations Officer Dennis Koenig Chief Clinical Officer Shadi W. Roman, PhD Chief Operating Officer John P. Sesek Chief Financial Officer

Habeebah R. Grimes Clinical Services Director Nancy Kochevar Quality Assurance Director

Thomas J. Martin, PhD Program Evaluation Director Erica New, MD Medical Director Sheila O’Donnell General Counsel and Risk Manager Claire Shands-Waag Human Resources Director DAY TREATMENT CENTERS

Eastwood Steven J. Byrd Program Coordinator Greenview Kenneth A. Siemen Program Coordinator Hopewell Steven Sheppard Program Coordinator Ireland Barry Ginnis Program Coordinator Phoenix Todd R. Ray Program Coordinator Prentiss Autism Center Darlene Kelly Program Coordinator Willow Creek D. Kyle Rose Program Coordinator CONNECTIONS

Jill Koenig Program Director

Associated with Educational Service Center of Cuyahoga County Contract Provider of Alcohol, Drug Addiction and Mental Health Services Board of Cuyahoga County Accredited by CARF: Commission on Accreditation of Rehabilitation Facilities A United Way Agency

www.pepcleve.org

NANCY WASYLYSHYN DESIGN

Since 1971, Positive Education Program has helped troubled and troubling children learn and grow, providing strength-based special education and mental health services in partnership with families, schools, and communities. Each year PEP positively impacts the lives of 2,500 children and their families through its areas of service: Integrated Special Education & Mental Health, Early Childhood, Autism, Community Support, and Consultation & Training. PEP operates many programs including: Day Treatment Centers, Early Childhood Plus, Connections and PEP Assist.