Sacred Heart Foundation

“Sacred heart healthcare system is the sole member of this organization.”

“Sacred heart healthcare system 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.”

“As the sole member of this organization, sacred heart healthcare system 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 in the sacred heart healthcare system ("system"); a tax-exempt integrated healthcare delivery system. Sacred heart healthcare system is the parent entity of the system. The organization's federal form 990 was provided to each voting member of the organization's governing body (its board of directors) prior to the filing with the irs. In addition, the sacred heart healthcare system finance committee also performed a detailed review of the federal form 990 prior to providing it to each voting member of its board of directors. Sacred heart healthcare system board of directors has delegated to the audit committee the responsibility to oversee and coordinate the federal form 990 preparation and filing process for the tax-exempt affiliates of the system. As part of the organization's federal form 990 tax return preparation process the organization hired a professional 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 organization's controller and various other individuals of the system 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 organization's internal working group for their review. The organization's internal working group and other individuals 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 organization's internal working group and various other individuals for final review and approval prior to presentation of the federal form 990 to the members of the sacred heart healthcare system finance committee. Following the committee's review the final federal form 990 was provided to each voting member of the organization's governing body prior to the filing with the irs.”

“The organization has adopted a conflict of interest policy which sets forth the organization's conflict of interest policy and processes. Annually, all those serving the organization in a fiduciary capacity, including directors, officers and key employees receive a copy of the policy and annual disclosure statements to be completed. In accordance with the policy, those disclosures are reviewed and considered by the organization's president and ceo and, as appropriate, the board of directors. An interested person may make a presentation at the board or committee meeting, but after such presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest. After exercising any reasonable due diligence required by the circumstances, the board or committee shall determine whether sacred heart can obtain a more advantageous transaction or arrangement with reasonable efforts from a person or entity that would not give rise to a conflict of interest. If a more advantageous transaction or arrangement is not reasonably attainable under circumstances that would not give rise to a conflict of interest, the board or committee shall determine in good faith by a majority vote of the disinterested directors whether the transaction or arrangement is in sacred heart's best interest and for its own benefit and whether the transaction is fair and reasonable to sacred heart and shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination. The interested director or committee member shall not vote regarding the decision of whether to enter into the transaction or arrangement. If the board of trustees or committee has reasonable cause to believe that an interested person has failed to disclose actual or possible conflicts of interest, it shall inform the interested person of the basis for such belief and afford the interested person an opportunity to explain the alleged failure to disclose. If, after hearing the response of the interested person and making such further investigation as may be warranted in the circumstances, the board of trustees or committee determines that the interested person has in fact failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.”

“On an annual basis the human resources department of the organization provides the board with compensation market data to review and consider with respect to all key employees and officers of the organization. The board reviews the market data, approves any salary adjustments for the executive population, considers both reasonableness and effectiveness of all remunerative programs and establishes the detailed performance expectations which are incorporated into the organization's incentive plans. All of these discussions are documented through the provision of meeting minutes.”

“The organization's filed certificate of incorporation and any amendments can be obtained and reviewed through the commonwealth of pennsylvania secretary of state. Governing documents, financial statements, and conflict of interest policy are available upon request.”

“In fiscal year 2016, the foundation began fundraising activities in support of sacred heart health system and affiliates.”

“In prior years, the foundation provided management services to sacred heart healthcare system and affiliates. Going forward, the foundation will support these affiliates through fundraising and charitable solicitation activities.”

“Net transfers from affiliate 1,709,964. Change in value of beneficial interst in perpetual trust 88,658.”