Health First Shared Services Inc.

“After review and approval by the System Corporate Controller of Health First, Inc. and Chief Financial Officer, the Form 990 draft 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, upon new hire orientation and thereafter as part of the annual elearning required for all associates. All individuals must 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 governing documents and conflicts of interest policies are available upon request to the compliance officer. Documents are available for the same period of disclosure as provided in section 6104(d).”

“Transfer of net assets from related tax-exempt 53,208,751. Increase/Decrease in Other Receivables 106,000.”

“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.”