The Fauquier Hospital Incorporated

“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/corporate compliance officer, 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 20% interest in joint venture llc., thus ending its operations as a hospital.”

“General operations grants offered in alternating years, general operations grants are the path foundation's most competitive awards. A small number of grants were made to local nonprofits demonstrating the highest standards and principles in our community totaling $501,283 in fy2017. The purpose of these grants is twofold: to empower exceptional nonprofits to expand, improve or pursue their best ideas; and to establish a shared standard of best practices that any nonprofit, regardless of size, can aim for. Funds may be used for any direct or indirect costs related to the nonprofit's activities, including but not limited to payroll, rent, utilities, supplies and equipment, project costs, professional development, capital improvements, programs, planning, marketing, and professional services. Health priority grants and responsive grants health priority grants are reserved for special initiatives, often developed or led by path which include major and sometimes multi-year projects designed to have long-range impact on our four areas of focus. In the current year, notable initiatives included fauquier reaches for excellence in school health (fresh), commit to be fit, and support for telehealth, broadband, community design and walkability. Health priority grants in support of special initiatives totaled $1,699,299 in fy 2017. A responsive grant in the amount of $265,000 was provided to support the northern piedmont community foundation.”

“Removal of beneficial interest in perpetual trust -10,339,211.”

“The organization has not changed its oversight process during tax year.”