Blanchard Valley Health System

“Scott malaney and dr. Richard polder are board members and are also paid employees of blanchard valley health system. Due to their employment, they are considered non independent voting members of the board. Form 990, part vi, section b, line 11b a detailed review of the form 990 is performed by the organization's compliance & audit committee. This committee is comprised of members of the board of trustees, members of the community, and members of upper management. The compliance & 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 for review. 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 conflicts exist.”

“The organization reviews executive compensation, benefits, and perquisites on a periodic basis to ensure consistency with compensation philosophy and market practice. A subset of members from the board of trustees 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 organization consults with sullivan cotter and associates (an external consultant) on an annual basis to review compensation matters. On a biennial basis, the organization performs a full compensation and benefit analysis and review. The results of the review by sullivan cotter and associates are shared/discussed with the board.”

“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. Form 990, part xi, line 9 investment income timing difference $ 122,903 transfers from affiliates $65,946,000 total $66,068,903 attachment”