Tarpon Springs Hospital Foundation Inc

“Tarpon Springs Hospital Foundation, Inc., d/b/a AdventHealth North Pinellas (the filing organization) has one member. The sole member of the filing organization is University Community Hospital, Inc. (UCH). UCH is a Florida non-profit corporation that is exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). Adventist Health System Sunbelt Healthcare Corporation (AHSSHC) is the sole member of UCH. AHSSHC is the parent organization of a healthcare system that operates hospitals and other healthcare provider organizations. AHSSHC is exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3).”

“The Board of Directors of the filing organization is to consist of not less than 12 members. One half of the Board of Directors shall be composed of individuals who (i) have demonstrated knowledge and/or expertise in business or health care; (ii) are familiar with the communities served by the Hospital and/or are residents of the community served by the Hospital; and (iii) have a proven history of being able to participate effectively with others in order to fulfill the general stewardship responsibilities of a Director (the "Community Appointees"). The remaining one half of the Board of Directors are appointed to the Board by UCH as the Member.”

“UCH, as the sole member of the filing organization, has certain reserved powers as set forth in the Bylaws of the filing organization. These reserved powers include the following: a) Approval of the selection of and removal of senior management of the filing organization; b) Approval of the filing organization's Articles of Incorporation; c) Approval of any material changes in services at the health care facilities; d) Approval of major building programs and purchases or sales of property in excess of $500,000 and sales/purchases of less than $500,000 when the filing organization's net revenues are not available for such purpose; e) Appointment of the Member Appointees and approval of the Community Appointees to the Board of Directors; and f) Approval of all operating and capital budgets and strategic plans of the filing organization. Adventist Health System Sunbelt Healthcare Corporation, as the 501(c)(3) top-tier member of the filing organization, has the following reserved powers: a) The authority to set limits and terms for all types of financial transactions exceeding $100,000; and b) The authority to secure naming rights and to direct the placement of funds and capital and the making of gifts, sponsorships, donations, loans, and transfers of funds or other assets by the filing organization in excess of $100,000.”

“The filing organization's current year Form 990 was reviewed by the Board Chairman, Board Finance Committee Chair, CEO and by the CFO prior to its filing with the IRS. The review conducted by the Board Chairman, Board Finance Committee Chair, CEO and the CFO did not include the review of any supporting workpapers that were used in preparation of the current year Form 990, but did include a review of the entire Form 990 and all supporting schedules.”

“The Conflict of Interest Policy of the filing organization applies to members of its Board of Trustees/Directors, its officers, executive employees, physician employees, and officers of the medical staff (to be known as Interested Persons). In connection with any actual or possible conflicts of interest, any member of the Board of Trustees/Directors of the filing organization or any other Interested Person of the filing organization must disclose the existence of any financial interest with the filing organization and must be given the opportunity to disclose all material facts concerning the financial interest/arrangement to the Board of Trustees/Directors of the filing organization or to any members of a committee with board delegated powers that is considering the proposed transaction or arrangement. Subsequent to any disclosure of any financial interest/arrangement and all material facts, and after any discussion with the relevant Interested Person, the remaining members of the Board of Trustees/Directors or committee with board delegated powers shall discuss, analyze, and vote upon the potential financial interest/arrangement to determine if a conflict of interest exists. According to the filing organization's Conflict of Interest Policy, an Interested Person may make a presentation to the Board of Trustees/Directors (or committee with board delegated powers), but after such presentation, shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement that results in a conflict of interest. Each Interested Person, as defined under the filing organization's Conflict of Interest Policy, shall annually sign a statement which affirms that such person has received a copy of the Conflict of Interest policy, has read and understands the policy, has agreed to comply with the policy, and understands that the filing organization is a charitable organization that must primarily engage in activities which accomplish one or more of its exempt purposes. The filing organization's Conflict of Interest Policy also requires that periodic reviews shall be conducted to ensure that the filing organization operates in a manner consistent with its charitable purposes.”

“The filing organization's CEO, other officers and key employees are not compensated by the filing organization. Such individuals are compensated by the related top-tier parent organization of the filing organization. Please see the discussion concerning the process followed by the related top-tier parent organization in determining executive compensation in our response to Schedule J, Line 3.”

“The filing organization is a part of the system of healthcare organizations known as AdventHealth. The audited consolidated financial statements of AdventHealth and of the AdventHealth "Obligated Group" are filed annually with the Municipal Securities Rulemaking Board (MSRB). The "Obligated Group" is a group of AHSSHC subsidiaries that are jointly and severally liable under a Master Trust Indenture that secures debt primarily issued on a tax-exempt basis. Unaudited quarterly financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) are also filed with MSRB for AdventHealth on a consolidated basis and for the grouping of AdventHealth subsidiaries comprising the "Obligated Group". The filing organization does not generally make its governing documents or conflict of interest policy available to the public.”

“For those Board of Director members who devote less than full-time to the filing organization (based upon the average number of hours per week shown in column (B) on page 7 of the return) the compensation amounts shown in columns (E) and (F) on page 7 were provided in conjunction with that person's responsibilities and roles in serving in an executive leadership position as an employee of Adventist Health System Sunbelt Healthcare Corporation.”

“The amounts shown in Part VIII, Line 7, column (i) of the Form 990 represent an allocated share of capital gain/(loss) from a system wide, corporate administered, investment program.”

“The parent corporation and sole top-tier member of Tarpon Springs Hospital Foundation, Inc. (the filing organization) is Adventist Health System Sunbelt Healthcare Corporation (AHSSHC). AHSSHC is a Florida, not-for-profit corporation that is exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). AHSSHC has established a shared service center to centralize the Accounts Payable (A/P) function for all AHSSHC subsidiary organizations. The filing organization has entered "0" in Part V, Line 1a because the filing organization no longer issues Form 1099 returns, rather, all such returns are filed by and under the name and EIN of AHSSHC as the payor subject to the information reporting requirements of Section 6041. The facts and circumstances support a position that AHSSHC, as a payor on behalf of its subsidiary organizations in a shared service environment, will have sufficient management and oversight in connection with the subsidiary organizations' payments to meet the standard set forth in Treas. Reg. Section 1.6041-1(e). AHSSHC will not merely be making payments at the direction of its subsidiary organizations. Accordingly, AHSSHC is considered the payor subject to the information reporting requirements of Section 6041.”

“Payments to Healthcare Professionals: Program service expenses 19,392,953. Management and general expenses 0. Fundraising expenses 0. Total expenses 19,392,953. Professional Fees: Program service expenses 6,027,439. Management and general expenses 0. Fundraising expenses 0. Total expenses 6,027,439. Purchased Medical Services: Program service expenses 1,897,793. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,897,793. Environmental Services: Program service expenses 597,689. Management and general expenses 0. Fundraising expenses 0. Total expenses 597,689. Recruiting: Program service expenses 32,312. Management and general expenses 0. Fundraising expenses 0. Total expenses 32,312. Miscellaneous Purchased Services: Program service expenses 10,915,521. Management and general expenses 0. Fundraising expenses 0. Total expenses 10,915,521. AdventHealth Management Fees: Program service expenses 0. Management and general expenses 5,160,083. Fundraising expenses 0. Total expenses 5,160,083. Billing & Collection Services: Program service expenses 0. Management and general expenses 937,435. Fundraising expenses 0. Total expenses 937,435. AdventHealth Shared Services Fees: Program service expenses 0. Management and general expenses 1,852,927. Fundraising expenses 0. Total expenses 1,852,927.”

“Transfer from Foundation 254,572. Transfer to Tax-Exempt Top-Tier Parent -482,427. Transfer to/from Tax-Exempt Parent with respect to debt 15,112. Pension Liability Adjustment 161,000. Change in Foundation Interest -523,350. Rounding 1.”

“Although the taxpayer is not required to undergo an audit as set forth in the Single Audit Act and OMB Circular A-133, the taxpayer is part of a controlled group of organizations that comprise a consolidated financial statement audit. The controlled group's parent is Adventist Health System Sunbelt Healthcare Corporation (AHSSHC), a 501(c)(3) organization. The system of healthcare entities owned and controlled by AHSSHC is known as AdventHealth. For the year ended December 31, 2024, AdventHealth will file a consolidated Single Audit which will include all entities that are part of the controlled group.”