Health First Shared Services Inc.

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

“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. These 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 salaries of our CEO and other Health First executives are reviewed and recommended annually to the Board of Trustees 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 is available upon request to the compliance officer. Documents are available for the same period of disclosure as provided in section 6104(d).”

“PROFESSIONAL FEES: Program service expenses 7,018,553. Management and general expenses 779,839. Fundraising expenses 0. Total expenses 7,798,392. CONSULTANT FEES: Program service expenses 7,819,477. Management and general expenses 868,831. Fundraising expenses 0. Total expenses 8,688,308. CABLE ACCESS: Program service expenses 126,334. Management and general expenses 14,037. Fundraising expenses 0. Total expenses 140,371. OTHER PURCHASED SERVICES: Program service expenses 4,815,103. Management and general expenses 535,012. Fundraising expenses 0. Total expenses 5,350,115. PURCH SVCS FL HOSP JV CONTRA: Program service expenses 4,792. Management and general expenses 532. Fundraising expenses 0. Total expenses 5,324. SUPPORT SERVICES OUTSOURCING: Program service expenses 288,209. Management and general expenses 32,023. Fundraising expenses 0. Total expenses 320,232. PHOTOGRAPHIC SERVICES: Program service expenses 5,057. Management and general expenses 562. Fundraising expenses 0. Total expenses 5,619. DATA PROCESSING SERVICE FEES: Program service expenses 1,250,661. Management and general expenses 138,962. Fundraising expenses 0. Total expenses 1,389,623. CLEANING SERVICE: Program service expenses 194,769. Management and general expenses 21,641. Fundraising expenses 0. Total expenses 216,410. OUTSOURCING SERVICE: Program service expenses 979,792. Management and general expenses 108,866. Fundraising expenses 0. Total expenses 1,088,658. TRANSCRIPTION SERVICE: Program service expenses 490,313. Management and general expenses 54,479. Fundraising expenses 0. Total expenses 544,792. PURCHASING SOFTWARE SERVICE FEES: Program service expenses 90,836. Management and general expenses 10,093. Fundraising expenses 0. Total expenses 100,929. OUTSIDE DIST COSTS/ORDER FEES: Program service expenses 83. Management and general expenses 9. Fundraising expenses 0. Total expenses 92. PATIENT SATISFACTION SURVEY: Program service expenses 611,479. Management and general expenses 67,942. Fundraising expenses 0. Total expenses 679,421. MEDICARE PROFESSIONAL FEES: Program service expenses 9,250. Management and general expenses 1,028. Fundraising expenses 0. Total expenses 10,278. FEES: Program service expenses 54,536. Management and general expenses 6,059. Fundraising expenses 0. Total expenses 60,595. RECRUITMENT: Program service expenses 162,394. Management and general expenses 18,044. Fundraising expenses 0. Total expenses 180,438. RECRUITMENT (MANAGERS & ABOVE): Program service expenses 355,782. Management and general expenses 39,531. Fundraising expenses 0. Total expenses 395,313.”

“Transfer of net assets to a related tax-exempt 46,828,441. Decrease in Notes Receivable -42,233.”

“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 year.”

“The filing organization is part of an obligated group that had more than $100,000 in bonds issued after December 31, 2002 that were outstanding on the last day of its tax year. The filing organization's share of these obligations is reported on Part X, Line 20 of Health First, Inc. The parent of the obligated group, is filing Schedule K on behalf of itself and all members of the obligated group.”