High Plains Baptist Health Foundation

Form 990, Part III, Question 3

“The organization sold its investment in bsa health system of amarillo, llc during 2015 and subsequently distributed all of its net assets to a related party, high plains christian ministries foundation. The organization no longer conducts program services, and legally dissolved on december 31, 2015. Form 990, part vi, questions 6, 7a, & 7b baptist community services is the sole corporate member of high plains baptist health foundation ("hpbhf"). The member appoints the directors of hpbhf and the member has certain authorization powers, which include the following: (a) amendment of the articles of incorporation or bylaws of the corporation; (b) any deviation from or amendment to the broad objectives of the corporation; (c) incurrence or assumption of any indebtedness; (d) authorizing any public fund raising campaign; (e) appointment of board members of bsa health system of amarillo, llc ("bsahs"), bsa physician holdings, inc. ("bsaph") or any of their affiliates (collectively, the "affiliates"); (f) disposition of any part of the corporation's assets having a fair market value in excess of $50,000; (g) authorizing contributions, distributions, or other transfer of funds; (h) dissolution of the corporation; (i) cessation of operations of any licensed hospital; (j) sale, lease, mortgage or transfer of all or substantially all of the assets of the corporation; (k) approval of the annual strategic/operating plan, if any, the annual budget and the annual community benefit plan, if any, of the corporation. (l) approval of any changes to the governing documents of bsahs, bsaph or any affiliate or entering into any contract arrangement or relationship with bsahs, bsaph or any affiliate; form 990, part vi, question 11b the form 990 is presented to each of the organization's board members prior to filing. Form 990, part vi, question 12c in connection with any actual or potential conflict of interest, an interested person must disclose the existence of his or her financial interest and all material facts to the board of trustees of high plains baptist health foundation ("the corporation") or the committee considering the proposed transaction or arrangement. "interested person" shall mean any trustee, officer, or member of a committee who has a financial interest. "financial interest" shall mean any of the following, whether on a direct or indirect basis: (a) an ownership or investment interest in any entity with which the corporation has a transaction or arrangement; (b) a compensation arrangement with the corporation or with any entity or person with which the corporation has a transaction or arrangement; or (c) a potential ownership or investment interest in, or compensation arrangement with, any entity or person with which the corporation is negotiating a transaction or arrangement; after disclosure of a financial interest and all material facts by the interested person, and after discussion of same, the interested person shall leave the board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists. Each trustee, officer, and member of a committee shall annually sign a statement which affirms that such person (i) has received a copy of this policy, (ii) has read and understands this policy, (iii) has agreed to comply with this policy, and (iv) understands that the corporation, as a charitable organization and in order to maintain its federal tax exempt status, must engage primarily in activities which accomplish one or more of its tax exempt purposes. A voting member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the corporation shall be precluded from voting on matters pertaining to that member's compensation. Any officer, employee, or independent contractor of the corporation who receives compensation from the corporation, dire”