Billings Clinic

“FORM 990, Part VI, LINE 2 NICHOLAS WOLTER, CONNIE PREWITT, AND JOY OTT have a business relationship because they are directors or officers of the WHOLLY-owned subsidiary disclosed on Schedule R, Part IV. DESCRIBE THE PROCESS TO REVIEW THE FORM 990 FORM 990, PART VI, LINE 11B The 990 review is completed before the return is filed. It is reviewed by the CFO, the executive group, the governance and nominating committee of the board and finally the board of directors.”

“FORM 990, PART VI, LINE 12C The Governance and Nominating Committee of the Board of Directors, according to their charter, review annually the disclosure statements of the Board of Directors and senior executives and take action to resolve conflicts. A Conflict of Interest Review Panel, chaired by the Compliance Officer, as outlined in organizational policy, is responsible for reviewing disclosed conflicts and approving necessary conflict management plans of all other interested persons at Billings Clinic.”

“FORM 990, PART VI, LINE 15A & 15B Billings Clinic has as executive compensation program administered by independent trustees following best practices and the highest regulatory standards expected of a not-for-profit organization. They follow a board approved charter and overall executive compensation philosophy which defines the market as a comparable set of not-for-profit health care delivery systems. They look at relevant market data of similar roles in similar organizations. Annual disclosure of the committee's actions and decisions to the full Board is required.”

“FORM 990, PART VI, LINE 19 Billings Clinic makes it governing documents, conflict of interest policy and financial statements available to the public on an as needed basis.”

“Form 990, part xi, line 9 change in fair value of interest rate swap 865,368 change in interest of affiliates (9,586,487) interest imputed on intercompany receivables 305,852 total (9,026,971)”

“Part x, column a during 06/30/14, the organization made reclassifications to the 06/30/13 consolidated financial statements to conform to the 06/30/14 financial statement presentation. These reclassifications did not have a net effect on the consolidated financials, however for 990 purposes, the reclassification resulted in a change to the 06/30/13 net assets. 06/30/13 prior year net assets - 354,302,789 06/30/13 restated prior year net assets - 357,239,566 increase in net assets - 2,936,777* * the increase in net assets is attributable to the presentation of how billings clinic shows their investment in an affiliate. The affiliate is eliminated on the consolidated financials but is treated as a seperate entity for tax purposes and is not eliminated on the billings clinic 990.”