Blanchard Valley Health System

“Cheryl buckland is a 50% owner of a company that has an outstanding loan to blanchard valley continuing care services, a related organization. Due to this relationship, she is considered a non independent voting member of the board. Scott malaney is a board member and is also a paid employee of blanchard valley health system. Due to his employment, he is considered a non independent voting member of the board.”

“Detail reviews of the form 990's are performed by an independent cpa firm and the organization's compliance and audit committee. This committee is comprised of members of the board of trustees, members of the community, and members of upper management. The compliance and audit committee reports to the board of trustees any areas of concern regarding the form 990's. Once the form 990's have been finalized, reviewed and approved, the members of board of trustees receive electronic communication that the form 990's are complete and available on boardnet. Any questions arising from board members are addressed by the compliance & audit committee, upper management, the accounting department, and/or external accountants.”

“Annually, the organization asks its board members, its corporate officers, and its key employees to sign conflict of interest letters. The organization also asks these individuals to review their activities and complete relationship questionnaires for the form 990 filing year. Board members are required to bring to the attention of executive management any conflicts as they arise. These conflicts are documented in the board minutes. Board members that have conflicts are to excuse themselves from discussions and/or voting on issues with which a conflict exists.”

“The organization reviews executive compensation, benefits, and perquisites on a bi-annual basis to ensure consistency with compensation philosophy and market practice. A subset of members from the board of directors serves as the executive compensation review committee, and this committee meets to approve wage increases as well as reviews the organization's position in the market when it comes to executive compensation. In addition, the executive compensation review committee regularly engages a human resources consulting firm to assess the reasonableness of the compensation program used for its executives. The organization is committed to a decision-making process for executive compensation that is consistent with internal revenue code section 4958 requirements for obtaining a "rebuttable presumption of reasonableness". The members of the committee approving executive compensation decisions are individuals who are disinterested (i.e., do not have a conflict of interest with respect to the arrangements). The committee reviews objective data, including survey data prepared by independent firms, as part of the decision-making process. The market data provided in the compensation report from the consulting firm assists the organization in establishing the "rebuttable presumption of reasonableness". The most recent full compensation and benefit analysis and reveiw was completed in early 2013 by sullivan cotter and associates (an external consultant) and shared/discussed with the board in april 2013.”

“The same process applies for all other executive steering committee members as detailed for the ceo.”

“Financial statements, required tax forms (i.e., form 990), as well as governing documents and conflict of interest policies are available upon request through the administrative and finance offices.”

“The amounts reported on 990 Part VIII Line 11a columns (b) and (d) represent management fee allocations out to other related organizations for management related services performed by individuals employed by Blanchard Valley Health System. The compensation, benefits, and other related costs for such individuals are recorded on 990 Part IX columns (b) and (c). FORM 990, PART XI, LINE 9 CHANGE IN BENEFICIAL INTEREST IN PERPETUAL TRUSTS: ($322,119) INVESTMENT INCOME TIMING DIFFERENCE: ($168,371) TRANSFERS FROM AFFILIATES: 3,624,857 Total: $3,134,367”