Childserve Specialty Hospital Inc.

“The executive committee of childserve, inc. (a related organization) has the responsibility to oversee the implementation of the executive compensation policy for the executive positions and key employees as defined by the irs. The executive committee will approve the compensation arrangements for the president/ceo without discussion or voting participation of the president/ceo. The executive committee will document the basis for executive compensation determinations concurrently with approval. The documentation contains the comparability data that was relied on and how the data was obtained. A comprehensive market based study will obtain compensation data for each key employee from similar type agencies and organizations every three years. During the years when the comprehensive market based study is not conducted, market based information such as the cpi or comparable data will be used annually to make adjustments to the midpoint.”

“ChildServe Inc. is the sole member of ChildServe Specialty Hospital”

“As the sole member, Childserve Inc. has the right to elect all members of the organization's board at the annual meeting.”

“As the sole member, Childserve Inc has the right to vote on all proposed amendments or restatements of the articles of incorporation and, if necessary, the articles of dissolution or merger.”

“An independent accounting firm prepares and reviews the form 990. The form 990 is then reviewed by the independent audit subcommittee of the finance committee. The subcommittee reviews the form 990 with the full board. The final form 990, with all required schedules, is provided to all voting members of the board prior to filing the 990.”

“Members of the governing board and key employees are required by policy to acknowledge in writing their understanding and compliance with the organization's conflict of interest policy. This is done annually with 100% response rate required.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”

“Childserve specialty hospital received licensure near the end of the tax year and intends to begin operations as a hospital in the next tax year.”