The California Medical Innovations

“The Form 990 will be reviewed by Senior Management, President, Board of Directors and outside counsel.”

“The board of directors has adopted two written conflict of interest policies. Thefirst policy (the financial conflict of interest policy) is applicable to officersand directors of the institute. Each officer and each member of the board ofdirectors is required to review and acknowledge their understanding of the financialconflict of interest policy upon appointment to office or to the board. Officersand directors are routinely encouraged to bring any and all potential conflicts ofinterest to the attention of the disinterested board members for review.the second policy (the research conflict policy) is applicable to researchersparticipating in any of the institutes federally funded grants. Researchers arerequired to review the research conflict policy and complete a training program onfinancial conflicts of interest in research at least every four years. Theinstitute takes very seriously its obligation to report any financial conflicts ofinterest to the national institute of health and encourages all researchers to fullydisclose any and all potential conflicts for review by the independent members ofthe board of directors. To the extent that the independent members of the board ofdirectors determine that a significant conflict exists, the following conditions andrestrictions could be imposed: public disclosure of the conflict, monitoring of theresearch by independent reviewers, modification of the research plan or removal ofthe affected researcher from the research, divestiture of significant financial interests, or severance of the relationship that creates the actual or potentialconflicts.”

“The presidents compensation was reviewed and approved by the disinterested members of the board of directors on december 31, 2016. The approved compensation package consists of a base amount, plus incentive bonuses upon successful funding of research grants or contracts, plus contributions to retirement plan. In determining whether the total amount of compensation was reasonable, the disinterested members of the board reviewed and discussed the proposed compensation arrangement and carefully considered the background, education, professional experience, skills and achievements of dr. Ghassan kassab, the unique qualities to the institute to fill the position of president and chief scientific officer, and the reports of compensation levels paid by other similar organizations according to the economic institute report. The disinterested members of the board also reviewed and relied upon the opinion of counsel that the compensation proposed to be paid to dr. Kassab was within the range that would be expected for an employee with dr. Kassabs unique expertise, performing the specified duties for an organization of the size of the institute. The decision of the board of directors was documented in a written consent. Dr. Kassab abstained from the vote. No changes to the presidents compensation package have been made since december 31, 2016. However, in 2019, 2020 and 2021, the president was eligible for certain bonus awards pursuant to the terms of the previously approved compensation package.”

“The Institute makes its application and return available to the public upon request.”

“The Institute makes its governing documents, conflicts of interest policies, and financial statements available to the public upon request.”

“The institutes financial statements are audited by an independent accountant on an annual basis. Rather than appointing a smaller committee to oversee the audit process, the entire board assumes the oversight responsibility for the audit process. Specifically, the board selected an independent accountant after reviewing the qualifications and proposals from at least two independent accountants, considering the federal procurement standards applicable to the selection of external audit firms, and considering the best interests of the institute. The independent accountant reports the findings of the audit directly to the board on an annual basis, during which time any audit deficiencies are disclosed and discussed.”