Morris Hospital Auxiliary

“Minutes and agenda of the full board of morris hospital auxiliary have and are maintained. The full board meets every month. Meeting dates applicable to 2016 are as follows: 01/14/2016 3/10/2016 05/12/2016 07/14/2016 09/08/2016 11/02/2016”

“MINUTES AND AGENDA OF THE FOLLOWING COMMITTEES OF MORRIS HOSPITAL AUXILIARY HAVE AND ARE MAINTAINED. EXECUTIVE/FINANCE COMMITTEE Meeting Dates: 02/17/2016 04/20/2016 06/15/2016 08/17/2016 10/19/2016 12/21/2016 DEVELOPMENT COMMITTEE Meeting Dates: 02/03/2016 04/06/2016 06/01/2016 08/03/2016 10/05/2016 12/07/2016”

“A draft of the 990, as prepared by bdo usa, llp, was reviewed by members of the finance committee along with the cfo and accounting manager of morris hospital. A joint special board meeting of the morris hospital, morris hospital foundation and morris hospital auxiliary boards was held to provide a formal presentation of the final 990's of each respective organization prior to filing.”

“A. Duty to disclose. In connection with any actual or possible conflicts or dualities of interest, an interested person must disclose in writing the existence of his or her financial interest and all material facts to the directors and committee members considering the proposed transaction or arrangement. "disclosure" as used in this policy shall mean providing promptly and fully to the appropriate persons a written description of the facts comprising the real or apparent conflict or duality. An annual disclosure statement shall be circulated to all persons to whom this policy applies to assist them in considering such disclosures, but disclosure is appropriate whenever conflicts or dualities arise. The written disclosure notices of conflicts or dualities shall be filed with the president/chief executive officer of the corporation or any other person designated by the foregoing from time to time to receive such notifications. B. Determining whether a conflict of interest exists. A disclosure may result in an actual conflict or a duality of interest exists. If it does not, after disclosure of the financial interest and all material facts and after any discussion with the interested person, he or she shall leave the board or committee meeting while the determination of a conflict or duality of interest is discussed and voted upon by the disinterested directors. Such remaining and disinterested board or committee members shall decide if a conflict of interest exists. C. Procedures for addressing the conflict or duality of interest. 1. An interested person may make a presentation at the board or committee meeting, but after such presentation, he or she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement that results in the conflict of interest. 2. The chair of the board or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. 3. After exercising due diligence, the board or committee shall determine whether the corporation can obtain a more advantageous transaction or arrangement with reasonable efforts from a person or entity that would not give rise to a conflict or duality of interest. 4. If a more advantageous transaction or arrangement is not reasonably attainable, under circumstances that would not give rise to a conflict or duality of interest, the board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the corporation's best interest and for its own benefit, and whether the transaction is fair and reasonable to the corporation, and shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination. If the interested person is a disqualified person under irc 4958, the board shall follow the prescribed procedure for entitling the corporation to a rebuttable presumption of reasonableness. D. Proscribed activity by persons having conflicts or dualities. When a disclosure concedes or the board or committee finds that an individual director, officer, agent, or employee has a conflict or duality, such individual shall, in addition to filing the disclosure notice required hereunder, abstain from making motions, voting, executing agreements, or taking any other similar direct or indirect action on behalf of the corporation or any affiliate where the conflict of duality might pertain, but shall not be precluded from all debate on the matter. When any interested person requests in writing, or upon its own initiative, the board of directors at any time may establish further guidelines consistent with the interests of the corporation for the resolution of any real or apparent conflict provided such guidelines are consistent with the corporation's nonprofit and tax-exempt status, and compliant with applicable federal and state laws and regulations. E. Violations of the conf”

“THE AUXILIARY's PROCESS IS DEFERRING TO THE HOSPITAL'S COMPENSATION COMMITTEE SINCE THE Auxiliary's PERSONNEL ARE EMPLOYEES PAID BY MORRIS HOSPITAL. THE HOSPITAL HAS A COMPENSATION COMMITTEE WHICH MEETS SEVERAL TIMES PER YEAR THAT WITH THE ASSISTANCE OF INTERNAL SOURCES (HUMAN RESOURCES) AND EXTERNAL ADVISORS; ASSESSES AND EVALUATES THE APPROPRIATENESS OF THE COMPENSATION AND BENEFITS OF UPPER MANAGEMENT WHICH INCLUDES CEO, CFO AND OTHER TOP MANAGEMENT OFFICIALS WHICH INCLUDES KEY EMPLOYEES.”

“The documents are made available upon request.”

“organization's mission: The mission is to support morris hospital through financial support and volunteer service. Specifically, the auxiliary raises funds through special events, sales, and the gift shop and provides a wide array of volunteer opportunities in the hospital and in the community. PROGRAM SERVICE ACCOMPLISHMENTS: The Morris Hospital Auxiliary plays an integral role in the provision of local healthcare by engaging our community in support of Morris Hospital through volunteer opportunities and fundraising events. In 2016, the organization provided Morris Hospital with 48,364 hours of volunteer service and $225,000 in funding from fundraising events and gift shop proceeds, making it the most successful fundraising year in the organizations 110 year history. One important source of fundraising revenue came from the 48th Annual Gala. Themed "Midsummer Night's Dream", guests enjoyed dinner as well as live and silent auctions. A video presentation explained the need for support for the Hospital Radiation Therapy Centers' new linear accelerator during the "fund an item" part of the evening's program, resulting in $67,000 in donations. The entire event's net proceeds totaled more than $143,000. On the heels of a successful Gala event, the Auxiliary hosted its annual Golf Outing & Bridge/Euchre Tournament at Morris Country Club on September 26, 2016. Card players and golfers enjoyed an afternoon raising funds for two special community based Morris Hospital programs- LifeLine and Patient Transportation. The event raised $30,000 in net proceeds for these two programs. The Auxiliary Gift Shop continued to support the Hospital as well. Employees and visitors enjoyed a variety of new products and gift items throughout the year while the gift shop provided $48,000 from sales to benefit the new linear accelerator. While fundraising events and gift shop sales are the heart of Auxiliary fundraising, service remains an important part of the mission. Membership in the Auxiliary grew to 545 in 2016, serving 29 areas of the hospital. While the needs of the Hospital have changed during its century-plus existence, the Auxiliarys commitment has not wavered as its role grows more significant with each passing year.”

“change in restricted net assets = ($871)”