Lone Star Community Health Center

“The executive committee shall include the chairman, the vice-chairman, secretary and not less than two other directors designated by the board. The executive committee shall convene as necessary and, under the direction of the full board, shall act for the corporation in all matters during the interim periods between meetings of the full board. The executive committee shall be responsible for all critical business.”

“The form 990 is prepared by an independent accounting firm based on the audited financial statements and information provided by the accounting department of the organization. Management reviews the form 990 prior to its filing with the irs. Review is performed at a minimum by the chief financial officer and chief executive officer who trace information contained within the draft form 990 back to source documentation checking for accurate compilation by the outside accounting firm. The audit/finance committee and full governing board receives a copy of the form 990 for review; this occurs prior to filing when possible. There is minimal review performed by individual board members.”

“Each director, principal officer and member of a committee with board delegated powers shall annually sign a statement which affirms that such person: a. Has received a copy of the conflicts of interest policy; b. Has read and understands the policy; c. Has agreed to comply with the policy; and d. Understands that the corporation is a charitable organization and that in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. To ensure that the corporation operates in a manner consistent with its charitable purposes and that it does not engage in activities that could jeopardize its status as an organization exempt from federal income tax, periodic reviews shall be conducted. The periodic reviews include the following subjects: a. Whether compensation arrangements and benefits are reasonable and are the result of arm's-length bargaining. B. Whether acquisitions of physician practices and other provider services result in inurement or impermissible private benefit. C. Whether partnership and joint venture arrangements and arrangements with management service organizations and physician hospital organizations conform to written policies, are properly recorded, reflect reasonable payments for goods and services, further the corporation's charitable purposes and do not result in inurement or impermissible private benefit. D. Whether agreements to provide health care and agreements with other health care providers, employees, and third-party payors further the corporation's charitable purposes and do not result in inurement or impermissible private benefit.”

“Compensation was originally determined for the current ceo in february 2017 by the board of directors based on a third party compensation study from arthur j. Gallagher and co. Compensation is reviewed annually by the full board of directors alongside market data provided by the director of human resources. Performance review is discussed in an executive session of the board with documented minutes kept on file by the secretary. The most recent year in which the compensation process described above was performed in 2024. For other officers and key employees, compensation ranges are set by director of human resources and reviewed at least annually for comparative purposes utilizing subscription data from a minimum of two purchased outside compensation surveys. An annual performance evaluation is performed by the ceo for each other officer and key employee. Any changes to compensation are documented on a personnel action form, approved by the director of human resources and the cfo. Performance evaluations and personnel action forms are kept within the organization's personnel files. The process described here was last completed in 2024.”

“The organization's governing documents, conflict of interest policy, and financial statements are available to be mailed or emailed to the public.”

“This process has not changed from the prior year.”