Marianjoy Rehabilitation Center Auxiliary

Schedule O Narratives

“Part IV, Line 12; Part XII Line 2A: An independent accountants' complilation report has been filed for this entity. A compilation is limited to presenting in the form of financial statements information that is the representation of the Auxiliary's management. The independent auditors have not audited or reviewed the auxiliary's financial statements, and accordingly, do not express an opinion or any other form of assurance on them. The financial statements were prepared on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than U.S. generally accepted accounting principles. Management has elected to omit substantially all of the disclosures and statements of cash flows required by U.S. generally accepted accounting principles. If the omitted disclosures and statements were included in the financial statements, they might influence the user's conclusions about the Auxiliary's financial position, results of operations, and cash flows. Accordingly, these financial statements are designed for those who are not informed on such matters. Part V Line 1a and Part VII Section B Line 1-2: Wheaton Franciscan Healthcare streamlined their reporting of IRS Forms 1099-MISC so that most 1099-MISC are now reported using the FEIN number of the parent organization or of a related organization. The actual expense continues to be paid by, or transferred to, the individual entity which is normally a subsidiary or related organization to the organization(s) issuing the 1099. For this reason, the reader may notice on some 990's that there are top 5 independent contractors reported, but no 1099s are reported. Likewise on the 990's of the organization(s) reporting number of 1099's, there may be a disproportionate share of 1099's reported as compared with the actual expenses and top 5 independent contractors reported. Part VI Section A Lines 6-8b: Marianjoy Rehabilitation Center Auxiliary has two classes of members which hold several reserved powers over Marianjoy Rehabilitation Center Auxiliary. These reserved powers include, but are not limited to, the election of members of the governing body and election of officers, approval of certain financial expenditures in accordance with policy, and approval of budgets and strategic plans; these approvals are based on recommendations from the governing body. Part VI Line 10a and 10b: Wheaton Franciscan Healthcare and Franciscan Ministries are part of a controlled group of health care and housing providers, controlled under a common parent organization Wheaton Franciscan Services, Inc. Some of these organizations are exempt through the Catholic Group Ruling and other organizations have a stand-alone exemption (IRS determination) letter. As such, these related affiliates have certain policies and procedures that were adopted at the parent level, but are applicable to the entire controlled group of organizations. All policy and procedure matters are handled in a manner to ensure that all activities are consistent with the organization's overall exempt purposes. Please see Schedule R for a full listing of all related affiliate organizations. Part VI Section B Lines 11a and 11b: Affiliates of Wheaton Franciscan Healthcare use a multiple-level review process on all Federal and State information and tax returns to ensure accurate and timely filing for all organizations. Under the direction of the Tax Manager, the Accounting Department prepares Forms 990, 990-T, and associated state filings. When complete, the return is first reviewed by the Accounting Director, who focuses on income statement and balance sheet items, and schedules where transactions of this type might be reported. If discrepancies are found, the item will be corrected prior to the next step in the review process. Once cleared through Accounting, the return is provided to the Tax Department, where the Tax Manager and Vice President of Accounting focus their review on consistency of reporting between all r”