Heritage Valley Health System Inc.

“Other Adjustments- Restricted Fund Income”

“VMF qualifies as a tax-exempt organization under Section 501 (c) (3) of the Internal Revenue Code (the "Code") and, therefore, is exempt from income tax on related income pursuant to Section 501 (a) of the code. VMF does not have any material uncertain positions as of June 30, 2016 and 2015.”

“Rounding adjustment.”

“Board designated assets are unrestricted funds under the control of the board of directors. The majority of these funds are held in the master trust. The remaining funds are in the checking and money market accounts. All interest, realized gains/losses, and unrealized gains/losses associated with these funds remain as board designated funds. Donor restricted specific purpose funds are composed of both temporary and permanently restricted funds. All funds earn interest, realized gains/losses, and unrealized gains/losses. Interest can be restricted by the donor, in which case it remains in the fund. The donor determines the interest classification at the time of the donation. The majority of the funds are held in the master trust with the remainder being in the checking account or money market accounts. Funds held by heritage valley sewickley foundation: cardiology fund -restricted for cardiology/cardiac rehab but otherwise unrestricted. Chaplain fund - restricted to use for the chaplaincy program but otherwise unrestricted. Critical care fund - restricted to critical care but otherwise unrestricted. Capital project fund - to be used to fund purchases of items designated through approved heritage valley sewickley capital budget. Margaret m. Dick scholarship fund - restricted endowment. Income only to be used to fund full-time first year students enrolled in heritage valley sewickley (hvs) school of nursing. Emergency department fund - for emergency department use to benefit children at medical director's discretion and for funding emergency department program & equipment needs. Equipment fund - restricted for equipment purchases. Irwin s. Terner memorial eye glass fund - restricted to purchase of eyeglasses for those that are unable to pay. Referrals to access this fund must be sent to case management of hvs for evaluation of patient's needs. Opthalmologists on staff provide glasses at cost. Eye surgery equipment fund - equipment needs of eye department. Faith in action fund - established in 2014 from proceeds of annual sewickley 5k run/walk. Restricted proceeds beenfit the faith in action program at heritage valley sewickley and sewickley ymca, which provides seniors in the community with rides to doctor appointments and medical treatments. Free care fund (charity care) - to pay for prescription drugs for qualified needy patients to a maximum of $5,000 per year; and to pay for services for qualified needy as assessed by case management. (currently transferring 10% per year for hvs charity care.) thomas r. Havrilla school of radiology scholarship fund - established by brighton radiology associates in memory of their friend and colleague to encourage individuals to pursue careers in radiology & employment at vmf and affiliates. Income earned will be used annually to provide financial assistance to the top academic student completing their 1st year of training to assist them with 2nd year tuition costs. Macfarlane scholarship fund - restricted endowment. Annual interest only to be used for $1,500 scholarships for the hvs school of nursing students who demonstrate financial need and superior clinical performance as determined by the administrator and faculty of the school. Hitchak scholarship - established with $11,000 gift from hitchak family members to endow a scholarship for graduate nursing studies. Maternal and infant child care fund - restricted for use of maternity and infant child care but otherwise unrestricted. E. Thorne mckallip professional nursing development fund - restricted fund income earned to benefit members of hvs nursing staff in their professional development, excluding formal education preparation: * inital nursing certification fee * nursing recertification continuing education credits * fees for local continuing education * out-of-state continuing education (fees, transportation, accomodations) * in-house education. Medical staff scholarship fund - established in 2013. To award annual college schoarships to”