Harnett Health System Inc.

“Allison taylor was a director and her sister, heather williams, was on the board.”

“On november 3, 2014, harnett health system entered into an agreement with cumberland county hospital system dba cape fear valley health system to provide day-to-day management services, primarily a chief executive officer. The agreement requires the system to reimburse cfvh for the salary and benefits associated with the president position and any other position approved in the contract. In addition, cape fear valley health system receives a management fee.”

“The board of trustees of the organization is comprised of thirteen residents of harnett county, nc and the appointed trustees shall serve a staggered term for 1 to 3 years. Seven trustees of the organization are appointed by the harnett county board of commissioners, and shall, at all times, include at least one resident of each of the five commissioners' districts and two other persons residing in harnett county. The remaining six trustees are appointed by the organization's board of trustees at its annual meeting from nominees that meet residency and age requirements as defined in the organization's bylaws.”

“Prior to submission, the 990 will be made available upon request for board members.”

“The conflict of interest policy is reviewed annually by the leadership of the board of trustees (throughout the year if needed) and administered to all voting board members.”

“Executive salaries are determined by a market analysis involving comparability data, industry standards, and local economics. The ceo's salary is a condition of the management agreement between the board of directors and wakemed (see the response to line 3 above). The board has indirect approval over the compensation paid to the ceo through this agreement, and has approval over any additional amounts and increases. Wakemed prepares a compensation study for officers and key employees excluding the ceo and makes the recommendations to the ceo of harnett health system. Those recommendations, including any amounts allocated for raises and incentives, are included in the annual budget process which is approved by the finance commitiee of the board.”

“Photocopies of recent filings of the form 990 are available upon request at the organization's administrative office. In addition, recent filings of the form 990 are available at www.guidestar.org.”

“Photocopies of the organization's governing documents, conflict of interest policy, and financial statements are available upon request at the organization's administrative office.”

“ADDED PULMONARY REHAB”

“Forgiveness of debt 7,486,207.”

“The organizatoin has not changed its oversight process or selection process during the tax year.”

“For the past few years, the organization has shown an intercompany due to and due from for the two hospital facilties that comprise the organization. The organization believes that, as a result of the inclusion of these intercompany assets/liabilities, the balance sheet for the organization has shown an inflated total for assets and liabilities. Beginning with this tax return, the organization has determined that removing those intercompany entries between the two hospitals would more properly refect the true balance sheet of the organization.”