Southcentral Foundation

“The number of Board of Directors was increased from 7 to 9 members.”

“THE TAX ACCOUNTANT AND LEE OLSON, Executive VICE PRESIDENT OF FINANCE FOR SCF, REVIEW THE 990 BEFORE IT IS FILED. THE COMPLETED AND REVIEWED 990 IS ALSO PROVIDED TO EACH VOTING MEMBER OF THE GOVERNING BOARD AND THE PRESIDENT/CEO PRIOR TO FILING.”

“Southcentral foundation's written conflict of interest policy includes the following: annual statements:a. Each director, officer and committee member shall annually execute a statement that affirms that such person:1. Receives a copy of this conflict of interest policy; and2. Reads and understands this policy; and3. Agrees to comply with this policy; and4. Understands that scf is a charitable organization and that in order to maintain its federal tax exemption it must engage primarily in activities that accomplish one or more of its tax-exempt purposes; and5. Does not have any financial interests or fiduciary responsibilities, other than the interests or fiduciary responsibilities disclosed.b. The recording secretary for the scf board of directors is responsible for collecting all executed annual statements and submitting the statements to the president and chairman of the scf board of directors for review.1. In conducting their review, the president and chairman may use internal or external consultants, as they determine to be necessary.2. After the president's and chairman's review, the executed annual statements must be returned to the recording secretary, who shall maintain the file of executed annual statements.periodic reviews of potential conflicts of interest:a. To ensure that scf operates in a manner consistent with its charitable purposes and that it does not engage in activities that could jeopardize its status as an organization exempt from federal income tax, periodic reviews of potential conflicts of interest shall be conducted. The periodic reviews shall, at a minimum, include the following subjects:1. Whether compensation arrangements and benefits are reasonable and are the result of arm's length, independent bargaining.2. Whether any grants are made to interested persons, or whether any transactions or arrangements entered into by scf resulted in a transaction where the compensation to the individual outweighs the benefit to scf.3. Whether arrangements with other organizations conform to applicable written policies of scf, are properly recorded, reflect reasonable payments for goods and services, if any, further scf's charitable purposes and do not result in inurement, impermissible private benefit, or excess benefit transaction.”

“SCF contracts with an external firm to conduct an annual salary survey and determine appropriate compensation levels.”

“SCF contracts with an external firm to conduct an annual salary survey and determine appropriate compensation levels.”

“SCF makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“Change in value of derivative instrument = $9877032”

“Description of Purpose:1A. To pay the costs of construction for a parking garage for the Anchorage Native Primary Care Center in Anchorage, AK.1B. To pay the costs of constructing Phase III of the Anchorage Native Primary Care Center in Anchorage, AK.1C. To pay the costs of the project described in the loan agreement. Loan Agreement - To finance the construction and equipping of an approximately 80,000 sq foot addition to the Anchorage Native Primary Care Center and and construction and equipping of an approximately 48,600 sq foot Residential Psychiatric Treatment Center.1D. Refund prior issue on 9/10/2002, then to refund bonds issued on 11/28/2014. To pay the costs of constructing a three-story medical office Building with a basement parking garage, to house Dental, Optometry and Behavioral Health Services in Anchorage, AK.2A. Refund bonds issued on 11/28/2014. To pay the costs of constructing medical building for Chicaloon, and pay the cost of constructing the Nuka Learning and Wellness Center. 2B. To pay the cost of acquisition, construction, restoration, improvement, renovation, equipping and general development of the real property and improvements located at 4441 Diplomacy Drive, Anchorage, Alaska, consisting of a five-story medical office building, including space for children's dental and dental training, obstetrics/gynecology, children's psychiatry and behavioral health and children's nerological development, and a parking garage, to be owned by the Borrower.2C. To refinance the Prior Debt, the proceeds of which were applied to the cost of acquistion, construction, improvement, renovation, equipping and general development of the real property and improvements located at 951 and 1001 S. Knik Goose Bay Road, Wasilla, Alaska, consisting of the Native Primary Care Facility owned by the Borrower.”