Rockville General Hospital

“Board members dennis o'neill and michele conlon are business partners.”

“Echn is the sole member of the organization.”

“Echn has the authority to elect trustees and officers and appoint committee members.”

“Echn has various powers including but not limited to: approving all operating and capital budgets, controlling the investment of funds, location of services, agreements and transactions, affiliations, changes, amendments, or restatements of certificates of incorporation and bylaws, adopting a system-wide vision and strategic plans, and approving debt borrowings.”

“Prior to filing the 990, the following steps are taken: 1) the accounting manager, together with other members of the finance department, conduct a review of the 990 along with a review and reconciliation of the 990 to the audited financial statements; 2) the accounting manager conducts an extensive review and discussion of the 990 with the cpa firm that prepares the return; 3) an electronic copy of the 990 is made available to the audit and corporate compliance committee of the board of trustees (the governing board), and senior management of the organization, for review.”

“Annually, the corporate compliance/internal audit department provides to officers, directors, or trustees and key employees the organization's conflict of interest policy and disclosure statement. Each individual is required to return to the department a signed document, acknowledging receipt of the policy and disclosure statement and disclose any interests that could give rise to conflicts. A summary of the disclosures is shared with the chairman of the board of trustees and with the audit and corporate compliance committee of the board. Individuals who are identified as having a conflict of interest are prohibited from participating in the governing bodies' deliberations and decisions related to the transaction. The returned statements are retained by the corporate compliance/internal audit department.”

“The compensation committee takes the following steps with an independent compensation consultant (1) reviews data related to current market values consistent for organization's executives by review of compensation levels and plans consistent with hospitals and health systems of comparable size and location; (2) completes a review of data on current and future plans for the organization, including structure and job descriptions; (3) reviews and approves and recommends salary ranges for each position, along with related benefits; (4) reviews and approves a tiered executive structure with appropriate incentive opportunity, benefits, and compensation. The last compensation review occurred 12/18/2013.”

“The organization, will, upon request, allow for review of our governing documents, conflict of interest policy and most recent audited financial statements at an office of the organization.”

“Change in beneficial interest in trusts -143,590. Pension and postretirement related adjustments -1,072,107. Net transfer from/(to) affiliates -2,111,991.”

“The echn audit committee assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant. There have been no changes in these processes since the prior year.”