Shared Services Health Plan Trust

“The organization's trustees have engaged a third-party administrator (tpa) to perform the day-to-day management functions of the trust and the underlying employee benefit plan. The trustees monitor the activities of the tpa as part of three (minimum) board meetings per year and also through financial reporting in the interim.”

“The organization is a trust for federal income tax purposes. Its application for tax exempt status under section 501(c)(9) of the internal revenue code was approved on may 17, 2011, effective november 1, 2008. The trust was established by three participating member colleges (members) and shared services consortium, llc (ssc), an employer organization. The rights and obligations of each member and ssc are outlined in the shared services health plan trust agreement. Effective january 1, 2012 a fourth member college joined.”

“The board of directors is comprised of one representative for each participating employer. The participating employers appoint their respective board member.”

“The board currently does not have any committees, therefore, no minutes were prepared.”

“A draft copy of the form 990 was emailed to all board members prior to filing.”

“The form 990 is available upon request.”

“Plan participants are instructed via the shared services health plan's summary annual report to request information by contacting their respective employer's human resource office or the offices of the tpa.”

“The shared services health plan trust (sshpt) trustees are employees of the organizations participating in the shared services health plan. The trustee's compensation paid by these related organizations is attributable to their employment at these organizations and is not considered compensation related to their sshpt trustee function. The compensation of the trustees has been requested and will be reported on the form 990 related organization, however, at the time of filing, the related entity compensation information is not available.”

“The modified cash basis of accounting is a comprehensive basis of accounting other than accounting principles generally accepted in the united states of america. Under the modified cash basis of accounting, only revenues collected, costs and expenses paid, and assets and liabilities arising as a result of cash transactions or from the recognition of income due from insurance companies for claims are recognized.”

“The shared services health plan trust board assumes responsibility for oversight of the audit of the organization's financial statements and selection of an independent accountant. This process has not changed from the prior year.”