CCMC Affiliates Inc

“Ccmc affiliates, inc. Is an affiliate within ccmc corporation and subsidiaries; a tax-exempt integrated healthcare delivery system. Ccmc corporation is the tax-exempt parent of the system. This organization supports connecticut children's medical center; a related internal revenue code section 501(c)(3) tax-exempt hospital organization that provides medically necessary healthcare services to all children in a non-discriminatory manner regardless of race, color, creed, sex, national origin or ability to pay. Although this federal form 990 shows one independent member of the organization's board of directors, under the internal revenue service definitions, this organization acts in a charitable tax-exempt manner for purposes of internal revenue code section 501(c)(3) and is controlled by ccmc corporation; which is governed by a board whose majority is comprised of independent voting members.”

“Ccmc corporation is the sole member of this organization. Ccmc corporation has the right to elect the members of this organization's board of directors and has certain reserved powers as defined in this organization's bylaws.”

“The organization is an affiliate within ccmc corporation and subsidiaries; a tax-exempt integrated healthcare delivery system("system") which includes connecticut children's medical center ("connecticut children's"). The organization's federal form 990 was provided to each voting member of its governing body (its board of directors) prior to filing with the internal revenue service ("irs"). In addition, connecticut children's finance and audit committee assumes the responsibility to oversee and coordinate the federal form 990 preparation, review and filing process. As part of the organization's federal form 990 tax return preparation process the organization hired a professional certified public accounting ("cpa") firm with experience and expertise in both healthcare and not-for-profit tax return preparation to prepare the federal form 990. The cpa firm's tax professionals worked closely with the system's finance personnel including the senior vice president/chief financial officer, corporate controller, accounting manager and various other individuals ("internal working group") to obtain the information needed in order to prepare a complete and accurate tax return. The cpa firm prepared a draft federal form 990 and furnished it to the system's internal working group for review. The system's internal working group reviewed the draft federal form 990 and discussed questions and comments with the cpa firm. Revisions were made to the draft federal form 990 where necessary and a final draft was furnished by the cpa firm to the system's internal working group for final review and approval. The form 990 was then provided to connecticut children's medical center's finance and audit committee and subsequently to each voting member of this organization's governing body prior to filing with the irs.”

“The organization is an affiliate within ccmc corporation and subsidiaries; a tax-exempt integrated healthcare delivery system ("system"). The organization and system regularly monitor and enforce compliance with its conflict of interest policy. Annually all members of the board of directors, officers and senior management personnel are required to review the existing conflict of interest policy and complete a questionnaire. The connecticut children's medical center corporate compliance/conflict of interest committee ("committee") has oversight over the management of identified or reported cases of conflicts of interest. The committee is also responsible for developing, approving, and implementing, as appropriate, policies and education relating to various types of conflicts of interest. The committee has delegated the day to day investigation of disclosures to the system's general counsel and director of compliance. Completed questionnaires are returned to the system's general counsel, who performs an initial screening of the conflict of interest disclosures. If potential conflicts of interests are reported, general counsel completes further investigation and recommends a management plan or other corrective actions to the committee.”

“The organization is an affiliate within ccmc corporation and subsidiaries; a tax-exempt integrated healthcare delivery system ("system") which includes connecticut children's medical center ("connecticut children's"). Connecticut children's board of directors has an executive compensation committee ("committee"). The committee has adopted a written executive compensation philosophy which it follows when it reviews and approves of the compensation and benefits of connecticut children's senior management. The committee reviews the "total compensation" of these individuals which is intended to include both current and deferred compensation and all employee benefits, both qualified and non-qualified. The committee's review is done on at least an annual basis and ensures that the "total compensation" of senior management of the organization is reasonable. The actions taken by the committee enable the organization to receive the rebuttable presumption of reasonableness for purposes of internal revenue code section 4958 with respect to the total compensation of certain members of the senior management team. The three factors which must be satisfied in order to receive the rebuttable presumption of reasonableness are the following: 1. The compensation arrangement is approved in advance by an "authorized body" of the applicable tax-exempt organization which is composed entirely of individuals who do not have a "conflict of interest" with respect to the compensation arrangement; 2. The authorized body obtained and relied upon "appropriate data as to comparability" prior to making its determination; and 3. The authorized body "adequately documented the basis for its determination" concurrently with making that determination. The committee is comprised of members of the board of trustees each of who are independent and are free from any conflicts of interest. The committee relied upon appropriate comparable data; specifically the committee obtained a written compensation study from an independent firm which specializes in the reviewing of hospital and healthcare system executive compensation and benefits throughout the united states. This study used comparable geographic and demographic market data including but not limited to similar sized hospitals, # of licensed beds and net patient service revenue, including complexity of services. The committee adequately documented its basis for its determination through the timely preparation of written minutes of the compensation committee meetings during which the executive compensation and benefits was reviewed and subsequently approved. The actions outlined above with respect to the committee and the establishment of the rebuttable presumption of reasonableness only applies to certain senior management personnel. The compensation and benefits of certain other individuals contained in this form 990 are reviewed annually by the president/chief executive officer with assistance from the organization's senior vice president of human resources and the human resources department, in conjunction with the individual's job performance during the year and is based upon other objective factors designed to ensure that reasonable and fair market value compensation is paid by the organization. Other objective factors include market survey data for comparable positions, individual goals and objectives, personnel reviews, evaluations, self-evaluations and performance feedback meetings. Please also refer to our response included in schedule j, part iii, question 3 for further information on how connecticut children's medical center satisfies the criteria to satisfy the rebuttable presumption of reasonableness for purposes of internal revenue code section 4958 with respect to executive compensation review and approval.”

“The organization's filed certificate of incorporation and any amendments can be obtained and reviewed through the connecticut secretary of state. Additionally, the organization's governing policies and audited financial statements are available to the public upon request.”

“Core form, part vii and schedule j reflect certain board members and officers receiving compensation and benefits from this organization or a related organization. Please note this remuneration was for services rendered as full-time employees of this organization or the related organization; not for services rendered as a voting member or officer of the organization's board of directors.”

“The organization is an affiliate within ccmc corporation and subsidiaries; a tax-exempt integrated healthcare delivery system ("system"). Certain board of director members and officers listed on core form, part vii and schedule j of this form 990 may hold similar positions with both this organization and other affiliates within the system. The hours shown on this form 990, for board members who receive no compensation for services rendered in a non-board capacity, represent the estimated hours devoted per week for this organization. To the extent these individuals serve as a member of the board of directors of other related organizations within the system, their respective hours are approximately the same as reflected on core form, part vii of this form 990. The hours reflected core form, part vii of this form 990, for board members who receive compensation for services rendered in a non-board capacity, paid officers, reflect total hours worked per week on behalf of the system; not solely this organization.”

“In 2019, the corporation adopted the financial accounting standard boards (fasb) accounting standards update (asu) no. 2016-14, not-for-profit entities (topic 958): presentation of financial statements of not-for-profit entities. Asu no. 2016-14 addresses the complexity and understandability of net asset classification, deficiencies in information about liquidity and availability of resources, and the lack of consistency in the type of information provided about expenses and investment return. The corporation has adjusted the presentation of these financial statements accordingly. Asu no. 2016-14 has been applied retrospectively to all periods presented, except for the disclosures around liquidity and availability of resources and analysis of expenses by nature and function. These disclosures have been presented for 2019 only, as allowed by asu no. 2016-14. The new standard changes the following aspects of the financial statements: - the unrestricted net assets class has been renamed net assets without donor restrictions; - the temporarily and permanently restricted net asset classes have been combined into a single net asset class called net assets with donor restrictions; - the financial statements include a disclosure about liquidity and availability of resources at september 30, 2019; and - the functional expense disclosure for 2019 includes expenses reported both by nature and function.”

“Other changes in net assets or fund balances include: - transfer to connecticut children's medical center; a related internal revenue code section 501(c)(3) tax-exempt organization - ($236,378); - transfer from connecticut children's medical center foundation, inc.; a related internal revenue code section 501(c)(3) tax-exempt organization - $1,273; and - bequests, gifts & grants (donor restricted) - ($1,746).”

“The organization is an affiliate within ccmc corporation and subsidiaries; a tax-exempt integrated healthcare delivery system ("system"). An independent cpa firm audited the consolidated financial statements of ccmc corporation and subsidiaries, for the fiscal years ended september 30, 2019 and september 30, 2018; respectively. The audited consolidated financial statements contain consolidating schedules on an entity by entity basis. The independent cpa firm issued an unmodified opinion with respect to the audited consolidated financial statements. Connecticut children's medical center's finance and audit committee assumes responsibility for the audited consolidated financial statements and the selection of an independent auditor.”