Shepherd Center Inc.

“Family relationship: alana shepherd (chairman of the board and trustee), james h. Shepherd, iii (president/coo and board member), and w. Clyde shepherd, iii (board member). Family relationship: shaler alias (board member), fred alias (board member), and andrew alias (board member and trustee). Family relationship: justin jones (board member) and elizabeth allen (trustee). Family relationship: bernie marcus (board member emeritus) and billi marcus (trustee emeritus). Note: the board's emeriti do not vote and they are not expected to attend meetings.”

“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, 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, medical director, 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.”

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

“Changes in temporarily restricted net assets -37,470,898. Changes in intercompany accounts -5,869,661. Changes in permanently restricted net assets 40,250.”

“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.”