Hospice of Health First Inc.

“The sole member of Hospice of Health First, Inc. is Health First, Inc., a Florida not-for-profit corporation that serves as the corporate parent of the health system.”

“Health First, Inc. (HFI), a section 501(c)(3) exempt organization and the parent of the exempt healthcare system, is the sole corporate member of the filing organization.”

“Per the bylaws and the laws of the state of Florida, the administrative power of the corporation shall be vested in the Board of Directors which shall have charge, control and management of property, affairs and funds of the corporation. The Board of Directors shall not take any action with respect to the following without approval of the member. -Change in the mission, purpose or scope of the corporation and its operation; -Incurrence of debt or guarantee the debt of another; -Approval of the sale, lease, purchase, conveyance or other disposition of all or substantially all of the assets of the organization. -Approval of the sale, lease, purchase, conveyance or other disposition of all or substantially all of the assets of the organization; -Approval of annual operating and capital expenditure budgets and any material deviations therefrom; -Appointment or engagement of auditors, legal counsel or consultants; -Creation, acquisition, sale, purchase dissolution or other disposition of any affiliated or controlled entity or joint venture or any interest in such entity; -Relocation, implementation or discontinuation of a major program service. -The repeal, amendment, or restatement of articles of incorporation and bylaws of the corporation; and -Capital expenditures and capital leases exceeding $1,000,000 in total.”

“After review and approval by the Chief Financial Officer the Form 990 is sent to each member of the Board of Directors electronically for their review and approval.”

“A copy of the Conflict of Interest policy is provided to all associates, including management, in which they review and electronically attest that they have agreed to the terms noted in the policy on an annual basis. In addition, Senior Leadership and BOD members on an annual basis are required to complete a Conflict of Interest questionnaire prepared and monitored by the Chief Compliance Officer. The questionnaire requires an attestation stating that the individual is free of conflicts should they not report anything of concern. There forms are tracked and kept on file. Should a conflict arise, the Chief Compliance Officer investigates the issue and determines a course of action to ensure enforcement of the policy.”

“The compensation process is determined by the parent company. The parent company's process is as follows: the salaries of our CEO and other health executives are reviewed and recommended annually to the Board of Directors and approved in executive session by the full Board of Health First. Health First contracts annually with a highly respected national consulting firm to provide these recommendations to ensure that our executives are compensated fairly and competitively when compared with similar roles in other healthcare organizations nationally. The Compensation Committee is independent for Internal Revenue Code section 4958 for the individuals whose salary is reviewed. Minutes are kept for all Board of Directors and compensation committee meetings. The process is documented contemporaneously in the Board and Committee meetings.”

“Quarterly and annually consolidated financials and consolidated statistical information is filed electronically on www.dacbond.com and is available to the public. In addition, any requests made to the Chief Financial Officer for the above referenced items are provided upon request in a timely manner. A copy of the conflicts of interest policy and governing documents is available upon request to the Compliance Officer. Documents are available for the same period of disclosure as provided in Section 6104(d).”

“Consultant and Professional Fees: Program service expenses 951,915. Management and general expenses 131,134. Fundraising expenses 0. Total expenses 1,083,049. Purchased Services: Program service expenses 4,187. Management and general expenses 63,354. Fundraising expenses 0. Total expenses 67,541.”

“Transfer of net assets to a related tax-exempt -1,848,904. Change in temporary restricted net assets -550,410.”

“The Audit Committee of Health First reviews and approves the annual audit and compliance audit plans, then makes its report to the Health First Board of Directors. The Audit Committee is responsible for the selection of the independent auditors. There was no change from prior years.”

“Employees at Hospice of Health First, Inc. are included in the Form 941 filed by Health First, Inc. EIN: 59-3336894.”