Middlesex Health System Inc.

“Draft forms of the 990, including required schedules, are provided to each board member for review. Members review the documents, highlight any significant changes and attest their approval. Any questions or comments are presented to executive management prior to filing. A copy of the final form 990 will be provided to the board prior to filing with the irs via a web based communication portal.”

“Conflict of interest forms are distributed annually to key employees, officers and the board of directors. Responses are returned to, tracked, and reviewed by the compliance officer. Information reported is considered personal and confidential and only disclosed when deemed necessary to protect the hospital against the effects of conflicts of interest and only after advising the reporting person of the proposed disclosure and of its extent. Material conflicts are reported to the board's audit committee for review and determination. In addition to completing the annual conflict of interest form, board members must immediately disclose any interest and all material facts to the board of directors. The board then reviews the facts and makes the determination as to whether a significant conflict of interest exists. If so, the board follows disabling guidelines to determine if the board member should be asked to resign or be removed.”

“Executive team compensation is reviewed annually by the executive compensation committee of the board. The committee has a charter and a policy statement setting forth a process and certain guidelines for determining compensation. Executives receive a base salary and have the opportunity for incentive compensation within a range set by the policy. Following the close of each fiscal year, the committee receives a market analysis from independent consultants regarding compensation at peer groups of comparable hospitals and health systems. Positions within the executive team are compared to benchmark positions within this market data and their compensation is compared to the data both with respect to cash compensation and total compensation including fringe benefits. The ceo recommends the incentive awards and base salary adjustments to the compensation of the executives who report to him, and the committee reviews those recommendations, approves or modifies them, and also determines any incentive award and base salary adjustment for the ceo. The consultants provide a written opinion annually confirming that the compensation of the executives, as adjusted by this process, is "reasonable" within applicable irs guidelines. Key employee compensation is set following the guidelines set forth in the hospital compensation policy. The objective of this policy is to pay employees based upon hospital need, the proper external labor market and performance. The last compensation review occurred 12/18/2013.”

“The middlesex health system, inc. Maintains a quality and compliance section on the hospital's website, middlesexhospital.org. The system posts the most current audited financial statements and form 990 with those of the hospital and other affiliates as they become avaiable, as well as statements and forms from at least two previous fiscal years. The system's conflict of interest policy is also posted on the website in the vendors and suppliers section. In addition, the organization's form 990 is available at www.guidestar.org and upon request.”

“Purchased services: program service expenses 0. Management and general expenses 0. Fundraising expenses 271,396. Total expenses 271,396. Consulting fees: program service expenses 0. Management and general expenses 0. Fundraising expenses 3,840. Total expenses 3,840.”

“The audit committee, subcommittee of the board of directors, has responsibility for oversight of the audit of financial statements. The audit committee periodically selects audit firms through an rfp process. Candidates are interviewed by the audit committee. Once selected, the auditors meet with the audit committee to discuss, plan and engage the auditors for the current year's audit. Once the audit is complete, the audit committee meets with the auditors again to review the results of the audit. The audit committee chair and independent audit firm can communicate directly without going through hospital management. The process has not changed from the prior year.”