Frederick Health Inc

“The 990 is prepared in conjunction with outside tax accountants and is reviewed by upper management prior to providing a copy to the board. A copy of the form 990 was provided to all members of the board prior to filing.”

“The Frederick Health, Inc. Board of Directors is committed to meeting its fiduciary responsibilities and maintaining its duty of loyalty to the hospital and the community it serves. To this end, the board will exercise vigilance in identifying any conflicts of interest. The board will also maintain transparency and objectvity in making decisions about conflicts of interest so that the organization's mission is always the first priority. The chairperson (or vice chairperson if the chair is involved) will notify all directors of a reported conflict of interest and will decide whether to take the matter to the full board to decide whether a conflict exists and if so, to decide what action to take. Alternatively, the chair person will refer the matter to the governance committee for an in-depth examination, summary, and recommendation prior to a full board discussion and decision. If time is of the essence, the chairperson will take the matter to the executive committee, and the chairperson will notify the full board of such action. Where a conflict of interest has been identified the board members shall not vote or be present for the discussion or the vote regarding the transaction at either the full board, executive committee, or governance committee meeting except to answer questions that may be asked of him or her. To prevent actual or perceived influence on the board's decision, the conflicted member is prohibited, after initial disclosure, from discussing the conflict of interest either formally or informally with fellow directors or with members of management. There will be an annual review of all board members and officers' transactions prepared by the administration and reviewed by the governance committee and the full board of directors. At that time, all directors will be reminded of the IRS intermediate sanctions regulation that establishes excise taxes as a sanction against administrators and directors of tax-exempt organizations who participate in "excess benefit transactions" (e.g., unreasonable high employment compensation or business deals).”

“The governing documents and the conflict of interest policy are available upon request. Frederic Health, Inc's consolidated annual audited financial statements are available at www.frederickhealth.org.”

“Other Fees - Total Expense: 137605, Program Service Expense: 137605, Management and General Expenses: , Fundraising Expenses: ; Contract Services - Total Expense: 994907, Program Service Expense: 994907, Management and General Expenses: , Fundraising Expenses: ; Professional Fees - Total Expense: 34948, Program Service Expense: 34948, Management and General Expenses: , Fundraising Expenses: ;”

“Change in equity of subsidiaries - 462000; Other Changes - -420;”

“The process has not changed from the prior year.”