Ann & Robert H Lurie Children'S Hospital of Chicago Foundation

“Description of Classes of Members or Stockholders Children's Hospital of Chicago Medical Center ("Medical Center") is the organization's sole corporate member. Form 990, Part VI, Question 7a Description of Classes of Persons and the Nature of Their Rights The organization's sole corporate member, the Medical Center, has certain reserved powers, including the power to appoint and remove all directors of the organization. Form 990, Part VI, Question 7b Describe Classes of Persons, Decisions Requiring Approval & Type of Voting Rights The Medical Center, through its board of directors or designated committee, as the sole corporate member of the organization, has certain reserved powers with respect to appointment and removal of directors, appointment of certain officers, approval of amendments to governing documents, approval of financial matters, and approval of significant transactions including, but not limited to, merger, dissolution, disposition of assets other than in the ordinary course of business, and creation of subsidiaries. Form 990, Part VI, Question 11b Describe the Process Used by Management &/or Governing Body to Review Form 990 A public disclosure copy of the organization's fiscal year 2014 form 990 Was provided to each member of the medical center and Lurie Children's Audit committee (of the board). The audit committee is the committee of The medical center charged with the oversight of audit and tax matters For the parent and affiliates. During a special audit committee meeting, And before the form 990 was filed, the audit committee was provided a Detailed review of the form 990 by the chief financial officer ("CFO"). The cfo and outside tax advisor also responded to the audit committee members' questions and afforded the opportunity for detailed discussion of the Form 990, prior to the audit committee taking action to approve the filing of the form 990. As part of its annual return preparation process, the organization on an ongoing basis consulted its tax consulting firm and outside tax legal Counsel, both of which possess expertise in health care and tax-exempt Return preparation, to advise and assist in the preparation of the form 990. These advisors worked closely with the organization's finance and Internal legal personnel and other members of the organization's team assembled to participate in the preparation of the form 990. Prior to presenting the form 990 to the board's audit committee, the Organization's team, including its advisors, met frequently to discuss And review drafts of the form. Form 990, Part VI, Question 12c Description of Process to Monitor Transactions for Conflicts of Interest On an annual basis, the Medical Center and its affiliates submit a comprehensive questionnaire to Board Members, senior management and purchasing personnel requiring disclosure of all interests that could give rise to actual or potential conflicts of interest. The Medical Center initiates follow up contact with those who do not respond and to clarify responses, where necessary. The Medical Center reviews each disclosure and provides a summary of relevant disclosures for the review and approval of its Governance Committee. Pursuant to the conflicts of interest policy of the Medical Center and affiliates ("Corporation"), directors, officers, physician leaders, and others who are subject to the policy are required To promptly and fully disclose in writing any actual, apparent or potential conflict of interest to the president of the Corporation and General Counsel. This disclosure shall be provided to the Governance Committee of the Corporation which shall consider all conflicts of interest issues and, if appropriate, shall provide such written disclosure to the directors, board committees considering the proposed transaction or other appropriate parties. In addition, on an annual basis, the corporation surveys each individual subject to the policy as to the existence of actual or potential conflicts of interest. Th”

“Explanation of Negative Net Assets/Fund Balance In 2009, the board of the hospital approved the consolidation of ownership of the investment assets on the books of the hospital. All balances of cash, restricted investments, restricted net assets, pledge receivable, annuities, and securities lending that were previously on the Foundation's books were re-designated to the Hospital's books. While the Foundation no longer reports these restricted assets of cash contributions from donors or donor related events on its books, the Foundation does still bear the expenses related to all fundraising events and activities. Form 990, Part V, Question 2 Allocation of Salary Expenses Ann & Robert H. Lurie Children's Hospital of Chicago ("Lurie Children's") pays and issues Forms W-2 to employees who work for Ann & Robert H. Lurie Children's Hospital of Chicago Foundation (Lurie Children's Foundation). The allocation of the salary costs are disclosed on Form 990, Part IX, Statement of Functional Expenses. Form 990, Part VI, Question 2 Description of Relationships *Eleanor M. Evangelides is the spouse of Micheal C. Evangelides. *Lester Crown and Michael S. Canmann have a business relationship. *Michael P. Goldman and Keith W. Jaffee have a business relationship. *Julie Howard, Linda Wolf and Richard Heise have business relationships. *Susan B. Noyes and Michael Borkowski have a business relationship. *Donald R. Wilson and Gregory H. Sachs have a business relationship.”