Baltimore Medical System Inc.

“The form 990 is prepared by independent outside accountants. A draft of the return is reviewed for accuracy by the ceo and cfo, and an electronic copy is provided to the board prior to electronic filing.”

“Annual declarations are required to be submitted by all officers and trustees to determine whether conflicts exist. Any reported conflicts are then reviewed by the board for appropriate action. If the board determines there is a conflict of interest, the following procedures will apply: 1. The interested person may make a presentation at the board meeting at which the transaction or arrangement related to the conflict is to be considered, but shall leave the meeting before discussion of and vote on that transaction or arrangement. 2. If appropriate, the chair of the board shall appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement and to make a written report to the board. 3. After exercising due diligence (including review of the report of the disinterested person or committee if one was appointed), the board shall determine whether bms can, with reasonable efforts, obtain a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest. 4. If a more advantageous transaction or arrangement that would not give rise to a conflict of interest is not reasonably available, the board shall determine by a majority vote of the disinterested trustees (excluding ex offico, non-voting members) whether the transaction is in bms's best interest, for bms's benefit, and fair and reasonable. The board shall make its decision as to whether to enter into the transaction or arrangement based upon that determination.”

“The ceo's compensation is determined and documented through an annual review process completed by the board. The organization's human resources department maintains current market data for all positions relative to the local market. This is the basis for compensation for all positions. The compensation of other officers and key employees is reviewed and approved by the ceo.”

“The governing documents, conflict of interest policy and financial statements are available upon request from our central offices for the same period of disclosure as set forth in section 6104(d).”

“The originally filed form 990 used draft financial statements. The amended return has been updated to include the information from the audited financial statements. The following sections were amended: part i - updated with audited numbers part iii, line 4a - updated with audited numbers part iv, line 12a - changed to yes part viii - updated with audited numbers part ix - updated with audited numbers part x - updated with audited numbers part xi updated with audited numbers part xii, lines 2b and 2c - changed to yes schedule d, part vi - updated with audited numbers schedule d, part ix, line 2 - updated with audited numbers schedule d, parts xi & xii - prepared with audited numbers schedule d, part xiii - added part x, line 2 disclosure”

“Other: program service expenses 10,391,386. Management and general expenses 4,044,695. Fundraising expenses 58,871. Total expenses 14,494,952.”