The Fauquier Hospital Incorporated

“Fhi services sold its interest in joint venture llc and ended it's operations as hospital as of september 30, 2018. Effective october 1, 2018, fhi services merged into the fauquier health foundation hence this year being the final year for the fhi services. Hence there is no activity in the taxable year ending september 30, 2019.”

“Fhs services is the parent of the organization and the fauquier health foundation (dba the path foundation) is a brother/sister of the organization.”

“The fhs services board of directors elects the members of fhi services.”

“Fhi services requires the approval of the fhs services board, to elect, appoint, or remove directors and implement amendments to the articles of incorporation.”

“The organization prepares the irs form 990 with assistance from an outside accounting firm. Once a draft of the form 990 is completed, it is submitted to the management of the organization for review and comments. After incorporating changes from management, materially complete draft forms 990 are made available to the board of the organization. Comments or questions received from the board are incorporated into a final irs form 990 which is signed by the president/ceo, christine m. Connolly.”

“Under the conflict of interest policy, all board members, management, and key employees complete an annual disclosure form regarding business relationships that he or she, or any family member, has with any other company that does business with the organization, as well as any business relationships between and among the board members, management, and key employees. The annual disclosure statements are reviewed by independent legal counsel and the audit and compliance committee, who are ultimately responsible if a conflict exists. Any such conflicts would be reported to the full board. In addition, any person who is covered by the conflict of interest policy has an ongoing obligation to disclose the existence of any actual or potential conflict to the board or the board committee in which the matter arises. Finally, the organization monitors board member eligibility for any potential conflicts, in order to avoid such conflicts from occurring in the first place. An opportunity is given at the start of each meeting to disclose any conflict of interest.”

“The ceo and cfo are compensated by the fauquier health foundation (dba the path foundation). The organization's" board adopted a compensation policy for its ceo and cfo. An executive compensation committee of independent directors of the board of the organization" was established to review the compensation for all employees specified as having a substantial influence over the organization and who receive remuneration from the organization". The executive compensation committee is advised by an independent compensation consultant, which opines to the compensation committee that the level of compensation paid and the process by which compensation is established meet applicable irs reasonableness and "safe harbor" standards. The outside compensation consultant provides data of compensation provided at similar organizations to ensure that the organization does not compensate more than market norms.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”

“Fhi services sold its interest in joint venture llc and ended it's operations as hospital as of september 30, 2018. Effective october 1, 2018, fhi services merged into the fauquier health foundation hence this year being the final year for the fhi services. Hence there is no program services activity in the taxable year ending september 30, 2019.”

“Transfer to fauquier health foundation -262,519,053. Via a merger document effective 10/1/2018”

“There was no change in the oversight procedures.”