Chg Foundation

“Norma diaz and joseph a. Garcia have a family relationship (spouses).”

“The organization's parent (community health group, or chg) engaged with joseph a. Garcia, a consultant with j.a.g. Consulting, llc (single-member llc, where joseph a. Garcia is the sole manager) to fulfill the duties of chief operating officer for chg. Compensation paid to j.a.g. Consulting, llc by chg in 2017 in relation to these duties was $656,055.”

“Chg foundation has one sole member, community health group, a california nonprofit public benefit corporation.”

“The organization's sole member, community health group, has the power to appoint all of the organization's board of directors.”

“As the sole member of chg foundation, community health group has the power to approve any amendment to the articles of incorporation or bylaws of chg foundation. Additionally, community health group has the power or authority given to members by the nonprofit public benefit corporation law by its written consent.”

“Moss adams, llp is engaged to prepare and complete the form 990 on behalf of chg foundation. The form 990 is prepared under the direction, review, and oversight of community health group's (chg foundation's parent) finance department, and executive management team. The form 990 is reviewed in detail by the chief financial officer of chg foundation who approves the final version for filing with moss adams, llp. Chg foundation's board of directors relies on the expertise of internal management and moss adams, llp for the accurate and timely filing of form 990.”

“Annually, the chg foundation board of directors and executive management team receive a refresher training (conducted by outside legal counsel) on the importance of identifying any conflicts of interest; the disclosure of any actual or potential conflicts of interest is an integral part of the culture at chg foundation and community health group. Any actual or potential conflicts of interest are reported to community health group's compliance officer for investigation and follow-up. In the event of any conflicts of interest, the board of directors will determine what restrictions, if any, will be imposed on the person(s) with the conflict; and such person(s) will recuse themselves from participating in any deliberations and decisions of the board of directors regarding matters involving the potential conflict of interest.”

“Chg foundation answered each of these questtions as "no" because all compensation paid to those persons reported in part vii or schedule j is paid by community health group (chg's foundation's parent). See the community health group form 990 schedule o for a description of the processes by which it determines executive compensation.”

“The organization's consolidated audited financial statements, which include the consolidated results of community health group and chg foundation are available to the general public on the california department of managed health care website (dmhc.ca.gov). The organization's governing documents are on file with the california department of managed health care and can be obtained via request under the california public records act. The organization's conflict of interest policy is not made available to the general public.”

“Health care expenses: program service expenses 703,256,831. Management and general expenses 0. Fundraising expenses 0. Total expenses 703,256,831. Pharmacy expenses: program service expenses 176,593,122. Management and general expenses 0. Fundraising expenses 0. Total expenses 176,593,122.”

“Chg foundation has no employees. For a fee, community health group provides administrative services and support to chg foundation under the terms of an administrative services agreement. The services provided include, but are not limited to: medical management, claims processing and payment, accounting services, and other services as defined. All employees performing work on behalf of chg foundation in accordance with the administrative services agreement are compensated and paid by community health group (parent), a related organization who also acts as the common paymaster. Compensation is allocated to chg foundation from community health group, and this allocated compensation is reported on chg foundation's form 990, part ix, lines 5-10.”

“A majority of the expenses reported in these lines represent amounts allocated to chg foundation from community health group in accordance with the terms of the administrative services agreement in place between the two entities. Such allocated expenses are reported at the functional level on chg foundation's form 990 part ix.”

“The organization has a committee that assumes responsibility for the oversight of the audit of its financial statements and selection of an independent accountant.”