Shannon Medical Center

“Process for monitoring compliance with conflict of interest policy we regularly audit for conflict of interest statements in the employees records. Procedure for monitoring: 1. Within 90 days of becoming an affected individual, that individual must review this policy and complete an smc conflict of interest disclosure form. 2. At least annually thereafter, affected individuals must review this policy and complete a conflict of interest disclosure form. 3. The conflict of interest disclosure form should be sent to the smc compliance officer. 4. At any time when an actual, potential, or perceived conflict of interest arises, the affected individual must revise his or her conflict of interest disclosure form and contact the smc compliance officer. The responsibility to promptly report such actual or potential conflicts rests with the affected individual. 5. The smc compliance officer will review disclosures and determine which require further action with the smc general counsel and appropriate smc executive staff.”

“Review of compensation integrated health strategies did an executive compensation study in june 2012 and it covered all executive salaries. Executive compensation is reviewed annually by the board of trustees' operations committee, which consults comparability data and keeps contemporaneous records of its decisions.”

“Governing documents available to the public the organizations governing documents, conflict of interest policy, and financial statements are available to the public upon request.”

“Classes of members or stockholders margaret shannon estate, a testamentary trust, is the sole member of the organization.”

“Members or stockholders who can elect members of the governing body the board of directors shall consist of each of the seven trustees of the margaret shannon estate, a testamentary trust. The other directors shall consist of representatives of the community and members of the medical staff of the hospital, to number in aggregate not more than seven who are appointed by the member and the chief executive officer of the corporation.”

“Process to review the form 990 the organization engages an outside accounting firm to prepare form 990. Once prepared, the form is reviewed by the organization's internal accountants prior to filing. The organizations finance committee will review after the form is filed.”

“Decisions of the governing body subject to approval approval of the sole member, the trustees of shannon west texas memorial hospital, is required for budgets, large financial expenditures that deviate from budget, sale of property, merger, acquisition, or consolidation, borrowing of money, seeking or giving grants, settlement of claims or litigation, amendment of bylaws, and contract in which the corporation assumes financial risk.”

“Other changes in net assets or fund balances change in additional minimum pension liability 136,037 transfers to/from affiliates (26,193,565) change in shannon trust net assets 23,603,956 net assets released from restriction (10,126,749) ------------- $(12,580,321)”