Assumption Community Services Inc.

“The Administrator and Director of Finance are employed by Assumption Home, Inc., a related tax-exempt organization. Members of the board are also board members of Assumption Home, Inc. Therefore, a business relationship exists between these individuals.”

“Assumption Home, Inc., a related tax-exempt organization, is the management agent for the organization. Related party receivables are recorded for expenses paid on behalf of Assumption Community Services. The receivable balance has no set repayment terms and interest is not added to the balance. During December 31, 2016, $132,000 of receivables were written off by Assumption Home, Inc. The remaining balance was $43,239.”

“The articles and bylaws of the organization were amended to clarify the relationship to the Diocese of St. Cloud, define the responsibilities of the board members, to define committee roles, and change the number of required board members from eleven (11) to thirteen (13).”

“The members of the corporation shall be as follows: 1.The Bishop of the Diocese of Saint Cloud or the person, who in his stead, exercises ordinary jurisdiction over the spiritual and temporal affairs of the Diocese of Saint Cloud in accordance with the legislation of the Roman Catholic Church; 2.The Vicar General of the Diocese of Saint Cloud, who has been appointed to be a member ex-officio of the corporation of the Diocese of Saint Cloud. In the event of a vacancy in the office of the Bishop, in those cases in which the Vicar General's office ceases, then and in such event the person who was the Vicar General, continues to be a member ex-officio of this corporation with all the rights and powers included thereto, but his membership shall cease at once when the Office of Vicar General has been filled; 3.The Pastor of the Church of Saint Boniface, Cold Spring, Minnesota; and 4.Two (2) trustees who are members of the Church of Saint Boniface, Cold Spring, Minnesota, which have been elected by the membership of the corporation.The members of the corporation shall be as follows: There shall be only one class of members of the corporation and each member shall be entitled to one vote on all actions that come before the membership of the corporation.”

“The Board of Directors shall be elected by the members of the corporation.”

“The members reserve the following functions: 1. Appoint the Board of Directors and remove any member with or without cause; 2. Approve a merger or dissolution of the organization; 3. Amendment of the Articles of Incorporation; and 4. Support and assess the Roman Catholic identify and mission of the organization and verify adherence to the Ethical and Religious Directives for Catholic Health Care Services now current or hereafter amended, as recommended by the Bishop of the Diocese of St. Cloud.”

“The organization does not have a committee with the authority to act on behalf of the governing board.”

“The Form 990 is prepared by an independent public accounting firm and is reviewed by both the Administrator and the Director of Finance. After their review, the Form 990 is provided to the Board of Directors, who review and approve it prior to filing with the IRS.”

“The organization's conflict of interest policy applies to all officers and members of the Board of Directors. The Administrator annually reviews the Board Members' associations for conflicts of interest. The Board of Directors annually reviews the Administrator's associations for conflicts of interest. If a conflict arises, depending on the circumstances, the conflicted individual abstains from voting, steps down from the Board, or terminates the association with the other party.”

“The organization does not pay compensation to its officers, directors, or key employees. The organization's officers are compensated by a related organization.”

“The governing documents, financial statements, and conflict of interest policy are available upon request.”

“Assumption Home, Inc., a related tax-exempt organization, employs all individuals and is responsible for filing all required federal employment tax returns. Payroll expenses are allocated to Assumption Community Services and reported on the appropriate lines in Part IX.”