Shepherd Center Inc.

“Family relationship: alana shepherd (chairman of the board), james h. Shepherd jr. (chairman - deceased), james h. Shepherd, iii (chief operating officer - board member), and w. Clyde shepherd, iii (board member).”

“Organization bylaws were updated during fiscal year 2020, a copy is available upon request.”

“The form 990 is prepared by carr, riggs & ingram, llc with the assistance of the accounting staff at the shepherd center. The return is then reviewed by the chief financial officer with further consultation with cri for all questions that are unclear as to meaning and intent. The chief financial officer then reviews the form 990 with the chairman of the board, the chief executive officer, and the executive director of the shepherd center foundation for their input and approval. The shepherd center provides each member of the board with a final copy of the filed 990 upon completion of the process.”

“The shepherd center's board of directors are required to complete a conflict of interest questionnaire on an annual basis. All paperwork is kept on file in the executive administration office. The executive assistant also cross references with the development office for any additional information regarding board member affiliations with other entities with which shepherd center does business. Additionally, for the purpose of protecting integrity and objectivity of its staff in the performance of their hospital obligations, it is the policy of the shepherd center that conflicts of interests should be avoided where possible, or disclosed and managed so as to avoid violation of state and federal laws and the hospital code of conduct policy. Since the existence of a conflict of interest is not always easily determined, staff is required to disclose those relationships or knowledge of a potential conflict, so that a reasonable determination can be made regarding the conflict and, if needed, the appropriate management of such conflict. All shepherd center employed health care providers, senior leaders and other identified individuals who have substantial purchasing authority are required to complete an annual conflict of interests questionnaire and provide documentation of outside activities. All paperwork is kept on file in the compliance office. Providers are screened via the open payments database annually.”

“The shepherd center utilizes a board compensation committee to determine compensation for the ceo and other executive management. This committee utilizes outside consultants (for example, sullivan cotter), industry compensation surveys, and reviews of similar organizations' form 990 to determine appropriateness of compensation. Shepherd center utilizes payfactors compensation surveys to determine whether or not a compensation package is in line with our region and relative bed size. The human resources vice president analyzes the data and gets approval from the chief executive officer. Salary increases for the ceo, chief medical officer, coo, and cfo are recommended by the board compensation committee, which is documented in the committee minutes. The committee must approve raises and they use an independent compensation consulting firm (sullivan cotter) to make their final decision. The final results are sent to the human resources vice president for processing and insertion into their employee files.”

“Shepherd center's completed 990 return is available for inspection on the center's website: www.shepherd.org. The return is also available upon request and is listed for public use on guidestar.org.”

“AVAILABLE UPON REQUEST.”

“Previously, the provision for bad debts was reported as a reduction from patient service revenue. However, with the change in the accounting standard update, bad expense is now being reported as an operating expense on the consolidated financial statements for the year ending march 31, 2020. To match the audited financial statements, a change is made on the 990 reporting. There is only a change in the presentation.”

“Shepherd center has allocated a portion of the expenses of these indirect cost centers to program service expense: information systems, communications, depreciation expense, food services, engineering, renovations and landscaping, security, and risk management.”

“Changes in temporarily restricted net assets -2,798,437. Changes in intercompany accounts -6,949,674. Changes in permanently restricted net assets 92,611. Cy loss (income) from pass-through entity 16,121. Py income (loss) from pass-through entity 3,864.”

“No change has occurred from prior year.”

“Shepherd center uses the accrual method of accounting. Security donations are received by shepherd center foundation and shepherd center. These securities are liquidated immediately and the proceeds are recorded directly to the temporarily and permanently restricted net assets portion of the balance sheet. As expenses are incurred, these funds are released from restriction and only then become an element of revenue. We report the entire amount of these donations on schedule m for transparency since the amount on the statement of revenue, line 1g does not fully represent the non-cash donations received.”