Watts Healthcare Corporation

“The whcc finance and audit committee reviews the 990 with the assistance of tax preparer partner and staff, i.e. The whcc cfo. The 990 draft is forwarded for board review at the next available meeting prior to the filing deadline. If any facts, grammar or style are requested for change on the draft forms, the changes are made, and after full board review, the 990 is filed.”

“All officers, directors and key employees are covered persons under whcc's conflict of interest policy. An annual conflict of interest disclosure form is required to be completed by all covered persons wherein they affirm that they 1) have received a copy of the conflict of interest policy; 2) have read and understand the conflict of interest policy; 3) agree to comply with the conflict of interest policy; 4) affirm any transactions they or a family member have entered into, directly or indirectly, with whcc; 5) affirm whether they or a family member held a position with an organization the whcc has any business relationship with; 6) affirm whether they or a family member had a financial interest in any organization that whcc has or is contemplating entering into a business relationship with; and 7) affirm whether they or a family member received any gifts, money, loans or other type of service or favor with a market value of $200 or more from any person or organization that has, or is seeking to have, a business relationship with the whcc. The board of directors reviews the annual disclosures and addresses any potential conflicts of interest, with any interested person abstaining from the deliberation and discussion of the matter.”

“Whcc uses an independent compensation consultant to review the salaries of the ceo, officers, and key employees per the california not-for-profit integrity act and irs implied goal that all not-for-profits use independent judgement in compensation matters for the top management personnel. Usually the ceo and director of the human resources plus the independent consultant review the compensation report results with the board in executive session. Also board members approve the ceo's compensation pursuant to ceo's contract provisions. The documentation of the board includes the terms of the transaction, the members who were present during the debate and vote on the transaction, a description of the comparable data and how it was obtained, and documentation of the basis for the determination.”

“Some or all of these items may be available upon request.”

“Medical services: program service expenses 175,196. Management and general expenses 139,191. Fundraising expenses 10,083. Total expenses 324,470. Management consultant: program service expenses 487,069. Management and general expenses 386,970. Fundraising expenses 28,032. Total expenses 902,071. Contractual services: program service expenses 619,552. Management and general expenses 492,226. Fundraising expenses 35,656. Total expenses 1,147,434. Billing: program service expenses 5,109. Management and general expenses 4,059. Fundraising expenses 294. Total expenses 9,462.”

“Recruitment: program service expenses 113,308. Management and general expenses 224,687. Fundraising expenses 0. Total expenses 337,995. Laboratory: program service expenses 121,591. Management and general expenses 96,602. Fundraising expenses 6,998. Total expenses 225,191. Radiology: program service expenses 45,162. Management and general expenses 35,881. Fundraising expenses 2,599. Total expenses 83,642.”