Sacred Heart Foundation

“This organization is an affiliate within the sacred heart healthcare system; a tax-exempt integrated healthcare delivery system ("system"). As reflected on core form, part i, lines 3 and 4 and also in part vi, lines 1a and 1b, there are a total of five voting members on the board of trustees. At year end, of these five voting members, three are non-independent due to the fact that they are employed by this organization. Although this federal form 990 shows only two independent board of trustees (slightly less than a majority) under the new 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 sacred heart healthcare system; which is governed by a board of directors, a majority of which are comprised of independent voting members.”

“Sacred heart healthcare system ("shhs") is the sole member of this organization. Shhs 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 entity became a member of the st. Luke's university health network, a tax-exempt integrated healthcare delivery system; after the close of its fiscal year ended june 30, 2017. The governing body shown on core form, part vii of the form 990 no longer existed at the time of filing this tax return. Accordingly, the organization is governed by the governing body of st. Luke's university health network. A complete copy of this form 990 was provided to the st. Luke's university health network board of directors prior to filing.”

“The organization has adopted a conflict of interest policy which sets forth the organizations 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 organizations 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 hearts 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.”

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

“The organization is an affiliate within the sacred heart healthcare system ("system"); a tax-exempt integrated healthcare delivery system. The system includes both for-profit and not for-profit organizations. 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, represents 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 per week per organization are approximately the same as reflected on core form, part vii of this form 990. The hours reflected on core form, part vii of this form 990, for board members who receive compensation for services rendered in a non-board capacity and paid officers, reflect total hours worked per week on behalf of the system; not solely this organization.”

“Sacred heart healthcare system is committed to providing healthcare and wellness, from conception to natural death, through quality services and programs based on the catholic ethical and religious directives. Our healthcare network continues its leadership in the community through collaboration and affiliation with recognized regional and national experts. We assure that the system will remain viable by providing cost effective and value-driven services. A program of continuous performance improvement enables us to respond to the needs of the community while giving meaningful employment, education and training to our employees. In fulfilling this mission, sacred heart healthcare system recognizes the dignity and eternal destiny of each individual with special concern for the sick and the poor.”

“Other changes in net assets or fund balances include: - net assets released from restriction for capital purposes - $676,747; - temporarily restricted net assets released from restriction - ($949,704); - transfer to sacred heart healthcare system; a related internal revenue code section 501(c)(3) tax-exempt organization - ($137,529); and - change in fair value of beneficial interest in perpetual trusts - $36,124”

“The organization is an affiliate within the sacred heart healthcare system ("system"), a tax-exempt integrated healthcare delivery system. Sacred heart healthcare system is the tax-exempt parent entity of the system. An independent cpa firm audited the consolidated financial statements of the system and all affiliates for the years ended june 30, 2017 and june 30, 2016; respectively, and issued a consolidated financial statement with consolidating schedules by entity. An unqualified opinion was issued each year by the independent cpa firm. Sacred heart healthcare system's audit committee assumes responsibility for oversight of the audit of the system's consolidated financial statements and the selection of an independent auditor.”