Sanford Group Return

“The following officers, board members, and key employees are employees of sanford or its related organizations. Many of these employees also serve on other related sanford boards or have business relationships with each other that span the organization as a whole: bill gassen, jennifer grennan, paul hanson, matt hocks, todd schaffer, michael lebeau, bill marlette, nick olson, scott wooten, karla eischens, and tiffany lawrence.”

“Sanford is governed by a board of trustees (bot) that has ultimate strategic and decision making authority. The bot delegates certain activities and responsibilities to boards of each of sanford's primary operating subsidiaries. The unique nature and complexity of the subsidiaries requires each to have a delegated board with a singular entity focus. Such bodies, referred to as boards of directors and boards of governors, address matters such as credentialing, accreditation standards, developing budgets, programs and facilities on an entity-specific basis, and generally consist of individuals distinct from the bot. These boards function much like committees in a traditional corporate structure. The bot then acts as a holding company board, synthesizing and reconciling each entity's programs and budgets into a system-wide strategic plan. This structure of governance produces a significant number of trustees, governors and directors. Subsidiaries included within this group tax return consist of sanford health, sanford north, sanford medical center, sanford medical center fargo, sanford clinic, sanford clinic north, sanford health network, sanford health network north, sanford home health, sanford research, sanford research north, sanford world clinics, sanford health of northern minnesota, baker park, inc., sanford west, sanford bismarck, sanford virtual care, sanford world clinics - klamath falls, and sanford health of south dakota. The board of trustees of sanford is also the board of trustees for sanford health, sanford north, sanford west, and sanford health of south dakota, and sanford is the sole corporate member of these entities. These entities, in turn, are the sole corporate members of their subsidiaries. The actions approved by a subsidiary's board of directors are then approved by the sanford board of trustees.”

“The sanford board of trustees appoints the board members for the boards of directors and boards of governors of the subsidiary entities.”

“The sanford board of trustees approves the actions approved by the boards of directors and boards of governors of the subsidiary entities. Form 990, part vi, section b, line 10b: sanford north, sanford clinic, sanford health network, and sanford health of south dakota have local chapters, branches or affiliates over which the organization has the legal authority to exercise direct or indirect supervision and control.”

“The form 990 is prepared internally by the tax department and reviewed by executive management. The tax department prepares return highlights and key disclosures for the executive management team. An external accounting firm reviews and signs the return. Before the return is filed, a complete copy is provided to the current board of trustees.”

“The annual conflict of interest disclosure process is managed by the chief compliance officer (cco). The cco is responsible for assuring that all completed forms are returned in a timely and complete manner. Conflict of interest questionnaires are sent to the system board of trustees, members of the governing boards of subsidiary entities, officers, and key employees for all entities subject to the irs form 990 filings. The cco reviews the disclosures and when a conflict of interest is deemed to exist, refers the disclosure to the sanford executive compliance committee for development of an administrative or management plan to address or eliminate the conflict of interest. Sanford will not engage in any contract, transaction or arrangement involving a board member's conflict of interest unless a majority of the disinterested members of the audit and compliance committee determine that appropriate safeguards are in place to protect sanford's charitable mission.”

“Sanford has a process for determining compensation of the persons listed on part vii, section a. This includes review and approval by independent persons or board of trustees committee, review of comparability data and contemporaneous substantiation of the deliberation and decision for such compensation. Sanford engages a nationally recognized independent compensation consulting firm annually to review the total compensation arrangements of the officers and executives of the organization, including the ceo. The executive committee of the board of trustees approves all compensation changes for the ceo in advance, relies on the market data provided by the independent consulting firm in making changes, and documents the basis for any changes in committee minutes.”

“Although the organization does not maintain a website where the public can access these documents, it would respond individually to any requests or inquiries from the public for these documents.”

“The table reports the compensation of the sanford officers, directors/trustees, system key employees, and five highest compensated employees and independent contractors. The sanford board of trustees has ultimate governance responsibilities for each subordinate organization.”

“We are reporting one group of top five employees and independent contractors for the entire group. Amounts listed as compensation for the five highest compensated independent contractors include payments for both materials and services.”

“Sanford health, sanford medical center, sanford north, sanford medical center fargo, sanford clinic north, sanford clinic, sanford bismarck, sanford health network north, and sanford world clinics have unrelated business gross income over $1,000.”

“Sanford world clinics has an interest in financial accounts in the foreign countries of ghana, china and germany.”

“Cash sweep for pooled investments 168,240,510. Pension plan termination adjustment and other changes 57,364,410. Net assets released for acquired ppe 7,100. Capital contribution to subsidiaries -21,233,826. Net assets tranferred for accounts payable 57,357,310.”