Beverly Community Hospital Association

“A trustee was appointed as a result of the chapter 11 bankruptcy.”

“A trustee was appointed as a result of the chapter 11 bankruptcy.”

“A public accounting firm prepared the form 990 in conjunctions with the chapter 11 bankruptcy trustee responsible for administrating the affairs of this debtor.”

“Prior to its bankruptcy, all memebers of the board of directors completed a questionnaire annually. Questionnaires are reviewed by the governance committee of teh board of directors. The governance committee refers a conflict of interest matter to the audit & compliance committee of bcha when the governance committee deems it appropriate in instances when a member of the governance committee may have a conflict of interest with respect to the matter before the committee. If a conflict is identified, the conflicted individual does not participate in deliberations and decisions impacting the conflicted matter.”

“Bcha does not compensate any of its employees; rather, the vice president of development and community relations is a paid employee of bcha. The compensation for the vice president of development and community relations is reviewed by the executive compensation committee of the bcha board of directors, which takes into account an annual survey and study completed by an independent compensation condulting firm.”

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

“Compensation of officers, directors, key employees, and highest compensated employees were not provided, compensation amounts for 2023 not provided.”

“Beverly community hospital association notes to federal/state tax returns fein: 95-1816005 general on april 19, 2023, the debtor, beverly community hospital association, filed a voluntary petition under chapter 11 of the united states bankruptcy code (case no. 2:23-bk-12359 sk). Subsequent to this date, howard ehrenberg was appointed trustee to administer the affairs of the bankruptcy estate. Assets of the estate the assets of the business. Other expenses include certain administrative costs and similar other items incurred by the trustee. Certain other incurred and unpaid liabilities of the bankruptcy estate include trustee, legal and accounting expenses which have been accrued. Any remaining expenses and non-deducted fees will be paid at the conclusion of the case, which is anticipated to close during 2024. Accounting records in connection with the taxpayer's insolvency, many accounting records were not adequately maintained and/or were not provided to the trustee. Records and information necessary to provide a complete and accurate accounting are not available and cannot be reconstructed. Consequently, no assurance can be provided by either the trustee or the tax preparer that the returns being filed accurately reflect all transactions of the debtor and his related tax liability. To the extent that accounting transactions, records and other information were available or could be reconstructed; such information has been included herein and used as the basis for computation of the taxpayer's income tax liability. Form 990 tax return fye 12/31/23 on september 6, 2023, all assets and business operations of this taxpayer and its related entities, beverly community hospital association and montebello community health services, inc, were sold and operations of the hospital were terminated. As such, former employees were not available to provide accounting records and information required to prepare a complete tax return with assurance of all accuracy. Consequently, the attached tax return has been prepared with information available, but no assurance of complete accuracy is provided by either the trustee, his counsel or tax preparer. This case is still being administered by the trustee.”

“Fiduciary bankruptcy tax return: beverly community hospital association fein: 95-1816005 fye: 12/31/23 trustee and tax preparer statement relevant to information contained in this return this tax return has been prepared from available records of the debtor and from the accounting records provided to the chapter 11 bankruptcy trustee. Due to taxpayer's bankruptcy, complete information necessary to prepare taxpayer's accounting and tax returns was not available to timely file these tax returns. Because of this, it was impossible to prepare tax returns for the estate until this date. Therefore, no penalties or interest for late filing as well as late payment should be assessed and should be waived for reasonable cause.”

“Compensation amounts for independent contractors in 2023 were not provided.”