CDC Physicians Organization Inc.

“Delegation of certain management duties - cdc physicians organization, inc. Delegated certain duties to the centers for dialysis care, inc., a wholly-owned subsidiary of community dialysis center, which is related to cdc physicians organization. The centers for dialysis care, inc. Provides the staffing, financial record keeping, and operational support to cdc physicians organization. The charges for these services are at cost.”

“Stockholders of the corporation - under ohio revised code section 1785, a professional corporation is permitted to have shareholders that are duly licensed to practice medicine. Cdc physicians organization was organized under ohio revised section 1785. The sole stockholder of cdc physicians organization is dr. Peter deoreo.”

“Form 990 review- form 990 is reviewed by the ceo and cfo. It is then reviewed by the finance committee of the board of directors.”

“Monitoring and enforcement of conflict policy - the monitoring and enforcement of the conflict of interest policy is overseen by the governance committee of the board. When a conflict arises, the individual is not permitted to vote or participate in the discussion of the transaction. Persons that are independent of the individual with the conflict make the decision about the transaction. The deliberations and decision are documented in the minutes of the board.”

“Compensation review and approval - although not compensated by cdc physicians organization, inc. ("cdcpo"), the executive staff of community dialysis center ("cdc"), an organization related to cdcpo, has their compensation reviewed and approved by the compensation committee of cdc. Periodically, cdc's compensation committee reviews comparable compensation data from outside sources, and the data is used in determining the compensation of the executive staff. The members of cdc's compensation committee are independent of the executive staff.”

“Availability of documents - the organization's financial statements, conflict policy and governing documents are available upon request.”

“Change in accounting principle -16,945.”

“Right of use assets and liabilities in february 2016, the financial accounting standards board ("fasb") issued accounting standards update ("asu") no. 2016-02, leases (topic 842) ("asu no. 2016-02"). The amendments in asu no. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. Asu no. 2016-02 is effective for annual periods beginning after december 15, 2020; however, the center has elected to early adopt the standard in 2019. Asu no. 2016-02 requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. Upon its adoption of asu no. 2016-02 on january 1, 2019, the center adopted the package of practical expedients for all leases that commenced before the effective date of january 1, 2019. Accordingly, the center 1) did not reassess whether any expired or existing contracts are or contain leases, 2) did not reassess the lease classification for any expired or existing lease and 3) did not reassess initial direct costs for any existing leases. The center did not elect the practical expedient related to using hindsight to reevaluate the lease term. The center adopted asu no. 2016 02 which resulted in a cumulative effect adjustment of $16,945 as of january 1, 2019.”