Alliance Resources Incorporated

“The sole member of Alliance Resources is CMC Healthcare System”

“The directors are appointed by the sole member.”

“The sole member has reserved powers over Alliance Resources but does not approve each separate action taken by the Alliance Resources board.”

“Form 990 is prepared by an independent tax accounting firm (Baker, Newman, Noyes). Upon completion, a draft of the Form 990 is sent to the Organization, where the CFO, Controller, and Director of Accounting perform a final in-house review prior to submission to the Board of Directors for final approval. Upon approval from Board, the Form 990 is filed with the Internal Revenue Service.”

“Officers and directors are required to complete a conflict of interest policy annually.”

“A related organization, Catholic Medical Center utilizes a compensation committee of the board of directors to set compensation levels and determine bonus potential for its senior leadership team. The committee is assisted by an independent consultant who surveys like-sized and performing institutions to benchmark relevant salary scales for each position. The consultant's findings are presented to the compensation committee who considers that external data with actual performance against a list of pre-established goals per senior leaders to set prospective compensation levels and bonus values. Bonus amounts are determined by how well an executive achieves a pre-defined set of goals. These goals, in general, are tied to the achievement of a specific task or project. Some goals are attached to achieve overall financial performance and mission performance, not solely revenue generation.”

“The Organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“Net Transfer from Affiliate 9,721,000.”

“The audit process has not changed from the prior year.”