The Hsc Foundation

“The form 990 is prepared by an accounting firm and then reviewed by the vp finance and senior vp finance. Once comments from the assistant vp finance and vp finance have been incorporated into the form 990, the form 990 is made available to the finance committee for their review, followed by a meeting of the finance committee in which the form 990 is presented and any questions are answered. After the finance committee meeting, the form 990 is made available to all members of the board of directors for their review and comments. Any comments or questions from board members are incorporated into the form 990 prior to filing.”

“The hsc foundation has a written conflict of interest policy that covers itself and all of its direct and indirect subsidiaries. Under that policy, whenever a potential conflict arises for the hsc oundation board of directors and officers, it is brought to the attention of the president and executive committee of the hsc foundation board, which analyzes the situation and makes a determination of whether or not an actual conflict exists. If it is determined that an actual conflict exists, the president and executive committee reports to the hsc foundation board of directors regarding the nature of the conflict and that person is thereafter recused from any discussion and vote regarding the matter. Whenever a potential conflict arises for employees of the hsc foundation management team, it will be brought to the board chair by the president which analyzes the situation and makes a determination of whether or not an actual conflict exists. If it is determined that an actual conflict exists, steps will be taken to eliminate the conflict and communicated to the employee involved. The board chair and president will report all coi to the executive committee foundation.”

“The hsc foundation uses a four step approach to executive compensation: 1. The executive committee is made up of independent board members without a conflict of interest, to establish and determine the reasonableness of total compensation for the system's disqualified executives and forwards to the full board for approval. 2. Periodically, the executive committee will engage an independent consultant to prepare a detailed written report on appropriate comparability data for comparable positions. 3. The executive committee reviews and relies upon the report of the independent consultant, along with other individual and market data, then debates and fully documents its decision about what is reasonable compensation for disqualified executives. 4. Once the executive committee develops executive compensation recommendations, they are presented to the system's full board for ratification.”

“The governing documents, conflict of interest policy, and financial statments are all available to the public upon request.”

“Contracted services: program service expenses 51,688. Management and general expenses 1,151,972. Fundraising expenses 0. Total expenses 1,203,660. Consultants: program service expenses 43,053. Management and general expenses 941,432. Fundraising expenses 0. Total expenses 984,485. Audit: program service expenses 0. Management and general expenses 87,278. Fundraising expenses 0. Total expenses 87,278. Legal: program service expenses 0. Management and general expenses 33,005. Fundraising expenses 0. Total expenses 33,005.”

“Reduction in equity value of subsidiaries -12,209,730. Net assets released from restriction -39,675.”