Franciscan Alliance Inc

“No action on the part of the board of trustees in respect of any of the following matters shall be effective unless the action has been approved by a majority of the members; namely: (a) corporate mission and philosophy; (b) appointment or removal of the chairperson, president, secretary, or treasurer of the corporation; (c) alienation of property as defined in canon law; or (d) encumbrance of debt as defined by canon law.”

“The information to prepare the form 990 of franciscan alliance, inc. ("franciscan") is gathered by finance staff and mission representatives and provided to its accounting firm who prepares the return. Senior management then reviews the return prior to filing. The form 990 is also made available to franciscan's board of trustees prior to filing.”

“The Corporation requires annual conflict of interest statements from each director, principal officer, members of committees with board designated powers, key employees, and executive leadership committee members which affirms that they have received, read, and understand the conflict of interest policy and have agreed to comply with the policy. In connection with any actual or possible conflict of interest a director, principal officer or member of a committee with board designated powers must disclose the existence and nature of the financial interest to the directors and members of committees with board delegated powers considering the proposed transaction or arrangements. If after disclosure of the financial interest, the director, principal or committee member shall leave the board or committee meeting while the financial interest is discussed and vote taken. In addition, ongoing reviews and assessments are made to make certain that the Corporation operates in a manner consistent with its charitable purposes. In conducting the ongoing reviews and assessments, the Corporation uses internal and external advisors. Reviews include compensation arrangements, acquisitions, partnerships, joint venture arrangements, and agreements to provide health care products/services, etc.”

“Franciscan Alliance, Inc.'s ("Franciscan") process for determining compensation for the organization's President/CEO, officers and key employees consists of periodic external reviews completed by national independent compensation consultants. The Executive Committee of the Board of Trustees approves the proposed compensation and benefits at an annual compensation review meeting held each year. The organization's President/CEO recuses himself from the vote on executive compensation. FORM 990, PART VII, SECTION A, COLUMN (F) Deferred compensation reported in this column includes split-dollar life insurance, employer deferral to section 403(B) Plan, and change in present value of the qualified and, if applicable, nonqualified defined benefit plan. The value of the nonqualified defined benefit plan is subject to a significant risk of forfeiture and as such possibly may never be paid to the executives participating in the plan. Changes in the amount reflected between years is primarily a function of the fluctuation in the actuarial discount rate used to measure this future liability which may never be paid to the executives.”

“FRANCISCAN ALLIANCE, INC.'S ("FRANCISCAN") PURPOSE IS TO CONTINUE THE HEALING MINISTRY OF CHRIST IN ACCORDANCE WITH THE TEACHINGS OF THE ROMAN CATHOLIC CHURCH AND IN PARTNERSHIP WITH OTHERS TO PROVIDE A FULL CONTINUUM OF HEALTH CARE SERVICES; TO CARRY ON EDUCATIONAL ACTIVITIES RELATED TO THE PROMOTION OF HEALTH; TO PROMOTE AND CARRY ON SCIENTIFIC RESEARCH RELATED TO HEALTH CARE; AND TO PARTICIPATE IN ACTIVITIES DESIGNED AND CONDUCTED TO PROMOTE THE GENERAL HEALTH OF THOSE SERVED BY FRANCISCAN. PLEASE VIEW "OUR GIVING JOURNAL" AT WWW.FRANCISCANALLIANCE.ORG/COMMUNITYBENEFIT WHICH REFLECTS OUR MISSION OF "CONTINUING CHRIST'S MINISTRY IN OUR FRANCISCAN TRADITION." FORM 990, PART V, LINE 4B ADDITIONAL FOREIGN COUNTRIES - PHILLIPPINES, POLAND, THAILAND, TURKEY, DENMARK, AND GREECE. FORM 990, PART VI, SECTION A, LINE 7A The entire Board of Trustees shall consist of no more than seventeen (17), with no fewer than seven (7) who shall be Sisters of the Eastern Province ("Province") of the Sisters of St. Francis of Perpetual Adoration, a religious congregation of women of the Roman Catholic Church ("Congregation"). The Trustees of the Board shall include the following persons: (A) Three Trustees shall be members of the Provincial Leadership of the Province, one of whom shall be the provincial, or her designee, and the remaining two shall be elected by the provincial leadership; (B) the Treasurer of the Province who may also be one of the Provincial Leadership representatives as described in (A); (C) the Sponsor Liaison for the Healthcare of the Province who may also be one of the Provincial Leadership representatives as described in (A); (D) the President/Chief Executive Officer of the Corporation; and (E) the Trustees elected by the Members to fill the remaining positions.”

“Equity in earnings of affiliates 9,843,021 minority interest in affiliates (20,108,963) other comprehensive income 307,308,328 dividends received from affiliates 127,125 net assets released for operations 1,614,362 net assets released from restriction (1,619,133) equity transfers to/from affiliates 9,019,295 change in temp restricted net assets 3,639,714 change in perm restricted net assets 7,234,661 other changes in net assets 18,188,625 net asset reclass 2,126,146 ------------- total other changes in net assets 337,373,181”