Diamond G Employee Benefit Trust

“Statement regarding overall governing body and management functions: the taxpayer is a voluntary employee benefit association (the "trust") whose sole purpose is to receive contributions and make disbursements pursuant to the unaka company incorporated diamond g employee benefit plan (the "plan"). The plan is a welfare benefit plan subject to erisa that provides health care benefits for all eligible employees of unaka company incorporated (the "sponsor") and is funded in part by employee contributions and in part from the general assets of sponsor whose payments also flow through the trust. Bluecross blueshield of tennessee administers the plan. Employee premiums are deducted from employee earnings each payday and a check or ach for total employee premiums and employer contributions is then forwarded to the first horizon bank trust department from benefits administrator for creditng to the trust's account. Employer's contribution is calculated monthly, based on the target amount that is determined annually, and forwarded to the first horizon bank trust department, as well. First horizon bank's trust department invests the funds in money market instruments. Claim invoices are received from bluecorss blueshield weekly and a request for funds transfer to the plan's checking account is submitted to the trust department by the benefits administrator for payment of claims. The trust department provides monthly statements to the plan administrator, which uses those reports to prepare summary reports for management of sponsor. Part vi contains several questions that are either inapplicable to the trust or that are answered differently from other types of tax-exempt organizations, specifically: no. 3 - the plan administrator has delegated the management and investment of its asets to the trust department of the first horizon bank. No. 8 - all actions taken by the trust are well documented by the plan administrator and mcgriff insurance advisor (the "broker"), though no formal meetins are held. No. 11 - the form 990 is reviewed by the benefits administrator and cfo of sponsor. No. 12 - the trust does not have written conflict of interest policy. Bluecross blueshield follows the benefits plan documents and there are no potential conflicts of interest. Any appeals are reviewed by bluecross blueshield regardless of who it is. No. 14 - the sponsor has an established document retention and destruction policy. No. 15 - this is not applicable. The trust does not have employees and does not compensate directly or indirectly any employees or employer. No. 19 - the plan and the sponsor provide information to plan participants as required by erisa and the department of labor. The trust has not made governing documents or financial statements available to the public and the trust does not maintain a conflict of interest policy.”

“Included in discussion above.”

“Included in discussion above.”

“Included in discussion above.”

“SEE DISCUSSION ABOVE.”

“Diamond g employee benfit plan used the modified cash basis to prepare its financial statements and form 990.”

“MODIFIED CASH BASIS”

“The process of selecting an independent accountant that audited the statements was reviewed by the cfo and the benefits administrator. The process has not changed from prior year.”