Michigan Peer Review Organization

“* The Form 990 is completed by the Finance department. * After the form has been reviewed by the CPA's the form is distributed to both the Finance and Compliance committees of the Board of Directors for their review. * After the Finance and Compliance Committees have reviewed the 990, the form is distributed to the full Board of Directors along with reports from the Finance and Compliance Committees. * After the Board has reviewed the form the Form 990 is filed with the IRS.”

“* All employees participate in conflict of interest (COI) training and complete COI disclosure forms at the time they begin working for MPRO and annually thereafter. The training is logged and the completed disclosure forms are maintained in personnel files. * The business development process includes review for potential organizational conflict of interest prior to the initiation of new contracts. * If an employee identifies a conflict of interest, that employee would not be able take part in any decision making or work related to that conflict of interest.”

“* Board members participate in COI training and complete disclosure forms prior to participation in their first Board meeting and annually thereafter. The training is logged and the completed disclosure forms are maintained by the Board Liaison. * New Board member recruitment includes an assessment of the impact of prospective Board members on applicable regulatory and contractual definitions of organizational conflict of interest. * If a Board of Director member identified a conflict of interest, that member would recuse him/herself from voting on any motions where the conflict of interest existed.”

“* MPRO has a Compliance Officer who monitors and enforces the conflict of interest policy. In addition the Compliance Officer completes several compliance audits each year. During these audits the Compliance Officer will review for compliance to the conflict of interest policy.”

“* Before the current CEO was hired the organization hired an independent salary consultant to gather information regarding the compensation of CEO's in organizations of comparable size and similar functions. This information was used to determine the starting salary for the CEO. * An employment contract is written each year for the CEO listing current annual compensation and current goals and performance measurements. Performance to these goals is used to determine annual salary adjustments. * The Executive Committee of the Board of Directors evaluates the performance of the CEO and makes recommendations to the full Board of changes to the annual compensation of the CEO. * The Board of Directors approves changes to the CEO's compensation. * Bi-Annually MPRO participates in a salary survey with American Health Quality Association (AHQA) for all its officers and key personnel. AHQA hires an independent salary consultant that compares the salaries for key positions for all Quality Improvement Organizations. This information along with geographical salary information is used to set the compensation for key personnel.”

“MPRO makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“Current expected credit loss”