Mercy Hospital Lincoln

“The filing organization has a sole corporate member, mercy hospitals east communities.”

“Mercy health, the ultimate parent company and the member of mercy health east communities, has reserve powers to appoint and remove all directors and officers for mercy health east communities.”

“The following corporate powers and responsibilities shall be reserved to the corporate member (and with regard to certain powers and responsibilities, to mercy health east communities as the corporate member of the corporate member or to mercy health): a. Approval of revisions to the mission, vision and operating values pursuant to which the corporation operates; b. Approval of any amendments to the articles of incorporation and these bylaws and any amendments to the organizational documents of any affiliate of the corporation; c. Appointment and removal of members of the board; d. Approval of the appointment and removal of the president of the corporation subject to the consent of mercy health east communities; e. Adoption of the strategic plan, goals, and objectives of the corporation; f. Adoption of the operating, capital and all other budgets for the corporation; g. Approval of the assignment, transfer, sale or lease of any of the assets of the corporation or any affiliate of the corporation in excess of one million dollars ($1,000,000) in any one or series of related transactions occurring within any twelve (12) month period; h. Authorization and approval of the incurrence of debt by the corporation or any affiliate of the corporation (other than debt incurred for the acquisition of goods that are acquired in the ordinary course of business) and to grant any security interests, place any encumbrances, enter into any covenants, and execute any documents and take any actions necessary or appropriate in connection with the incurrence of such debt; i. Approval of a plan of merger, consolidation or dissolution of the corporation; j. Approval of the lease, management or purchase of, or affiliation with, another hospital or hospital system, or health care facility or health care system by the corporation; and, k. To approve the creation, ownership or acquisition of, or affiliation with, any other organization by the corporation. L. Oversee, approve and monitor human resource programs, which shall promote an organizational environment that: 1. Provides for the recruitment and rention of co-workers who are service oriented, compassionate, engaged, and who find meaning and purpose in working in a faith-based organization; 2. Enables people to relate to one another with respect and acceptance in a spirit of community; 3. Promotes co-worker participation and voice in their work lives; 4. Gives co-workers a fair opportunity to devleop their skills and talents, and a means by which their contributions are recognized; 5. Provides co-workers with the materials and equipment to properly do their work; and, 6. Ensures co-worker safety and well-being.”

“Dscr the process used by management &/or governing body to review 990 the form 990 is prepared by mercy health's tax department, using information provided by the filing organization. A draft form 990 is reviewed by the filing organization's finance team, including the director of finance and the chief financial officer. The draft form 990 is also reviewed by mercy health's tax department, to ensure accuracy and consistency with other related organizations' forms 990. After questions arising from the various reviews are addressed and incorporated into the form 990, a revised draft is provided to the filing organization's leadership team, including the cfo and ceo, for review. Once reviewed and approved by the filing organization's leadership team, the form 990 is provided to the board of directors for review; it is then signed and filed with the irs.”

“Officers, directors, key employees and other disqualified persons are required to complete a conflict of interest questionnaire annually and did so in the normal course for the year ended june 30, 2024. This process is administered at the mercy health level by mercy's corporate compliance department. The conflicts and their respective resolutions are shared at the mercy level with a team including mercy's senior vice president of financial operations & planning, chief compliance officer and other members of finance, legal and hr. The questionnaires are then reviewed with leadership at the local level and potential conflicts discussed and resolved. Summary results are reviewed with mercy's stewardship committee of the board of directors.”

“Process to establish compensation of top management officials, other officers and key employees for the top management officials, those classified as officers (and thus disqualified persons) and key employees, the organization relies upon mercy health, which uses the following to establish the compensation: external market salary surveys, external market salary studies, and engagement of an independent compensation consultant. For certain executives and physicians the compensation is reviewed/approved by the compensation committee of the board of mercy health. For all other caregivers compensation is reviewed/approved by the total rewards oversight committee. Compensation reviews are completed on an annual basis and review was completed during the reporting year.”

“Governing documents, conflict of interest policy, and financial statements are made available upon request but are not published publicly.”

“Former employee compensation is reported for the calendar year ending within the organization's fiscal year while average hours are based on the fiscal year period from july 1, 2023 through june 30, 2024.”

“It is possible that a portion of the amounts reported for mccarthy building company, mid river asphalt inc, and paric corporation were related to materials in addition to amounts paid for services. However, the amounts are not distinguishable.”

“Form 1099/1096 filing vendors for the filing organization are paid by mercy health (ein 43-1423050). As such, all required form 1099 and form 1096 reporting is made for the entire mercy health system (with limited exceptions) under the mercy health ein.”

“W-3 filing most employees are paid by a related organization under a common paymaster arrangement. As such, required payroll filing (including w-2 and w-3's) is reported under the related organization, mhm support services, ein 20-2553101.”

“Net transfers (to)/from affiliates -7,560,336.”

“Audit of financial statements the filing organization's financial statements were included in mercy health and subsidiaries annual financial statement audit. Mercy health and subsidiaries received an unqualified opinion from the external auditors for fiscal 2024 (the tax year currently being reported). However, no separate audit opinion was issued on the financial statements of the filing organization. The ultimate responsibility for oversight of the financial statement audit and selection of the external auditor lies with the stewardship committee of the mercy health board of directors. Audit results are communicated to this committee.”

“Single audit act and 2 cfr 200 audit mercy health undergoes a consolidated 2 cfr 200 audit every year and this audit was completed for the fiscal year ending june 30, 2024 by december 13, 2024. Each entity that receives federal funds during the year is included on the schedule of expenditures of federal awards (sefa) and is also included in the population included in the audit. If the filing entity received federal funds during the year ended june 30, 2024, it will be included on the mercy health consolidated sefa, and therefore, also included in the population included in the audit.”