2024-04-25T19:20:56-05:00 2022-06-30 330700332 VASQUEZ COMPANY LLP 655 N CENTRAL AVE STE 1550 GLENDALE CA 91203 990 2021-07-01 330440021 BORREGO COMMUNITY HEALTH FOUNDATION BORR 7605418848 587 PALM CANYON DR PO 2369 208 BORREGO SPRINGS CA 92004 ISAAC LEE PRESIDENT 7605418848 2024-04-25 1 ISAAC LEE 999009999 REGINA L PRINCE CPA P00576936 2138731700 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z EDGAR BULLOCH 587 PALM CANYON DR PO 2369 208 BORREGO SPRINGS CA 92004 115210931 0 X WWW.BORREGOMEDICAL.ORG X 1991 CA TO BE THE COMMUNITY LEADER IN IMPROVING THE HEALTH OF THE POPULATIONS IN OUR SERVICE AREA. OUR PRIMARY FOCUS IS THE UNDERSERVED, WITH AN EMPOWERED WORKFORCE PROVIDING MEASURABLE QUALITY AND COMPASSIONATE CARE. 10 10 1509 10 0 0 21191638 28326489 214400145 85517406 12390 -319788 219403 1260755 235823576 114784862 9500 0 0 0 104495203 91930032 0 0 2529174 127551433 71548006 232056136 163478038 3767440 -48693176 92035902 83784596 98898309 139340179 -6862407 -55555583 X BORREGO HEALTH'S MISSION IS TO BE THE COMMUNITY LEADER IN IMPROVING THE HEALTH OF THE POPULATIONS IN OUR SERVICE AREA. OUR PRIMARY FOCUS IS THE UNDERSERVED, WITH AN EMPOWERED WORKFORCE PROVIDING MEASURABLE QUALITY AND COMPASSIONATE CARE. 0 1 132437783 85517406 BORREGO HEALTH PROVIDES HIGH QUALITY, COMPREHENSIVE, COMPASSIONATE PRIMARY HEALTH CARE TO THE PEOPLE IN OUR COMMUNITIES, REGARDLESS OF THEIR ABILITY TO PAY. WE SERVE THESE COMMUNITIES AND ADJOINING REGIONS WITH RESPECT, DIGNITY AND CULTURAL SENSITIVITY AS A MEDICAL HOME AND SAFETY NET FOR ESSENTIAL HEALTH CARE AND SOCIAL SERVICES. BORREGO HEALTH IS A NON-PROFIT 501(C)(3) FEDERALLY QUALIFIED HEALTH CENTER (FQHC) AND A FEDERAL TORT CLAIMS ACT DEEMED (FTCA) FACILITY. OUR SERVICE AREA COVERS A 250-MILE CORRIDOR ON THE EASTERN SIDE OF SAN DIEGO AND RIVERSIDE COUNTIES, CA, AND CONSISTS OF 18 HEALTH AND SPECIALTY CARE CENTERS, 2 PHARMACIES, 4 DENTAL CLINICS, AND 4 URGENT CARE CENTERS. SEE SCH O PAGE 42 FOR CONTINUATION.BORREGO HEALTH CONTINUED TO PROVIDE HEALTHCARE TO ALMOST 90,000 PATIENTS IN ITS CLINICS. MOBILE UNITS AND SCHOOL-BASED CLINICS. WHEN FACED WITH THE ABRUPT DECLINE IN CONTRACT DENTAL REVENUE, BORREGO HEALTH HAD TO CUT EXPENSES AND BEGAN THE PROCESS OF CONSOLIDATING SERVICES WHERE NECESSARY AND CLOSING SOME CLINICS AND MOBILE UNITS. DESPITE THESE CUTS, BORREGO HEALTH WAS ABLE TO SERVE 90,000 PATIENTS AND KEEP ESSENTIAL HEALTHCARE IN HARD-TO-REACH COMMUNITIES.BORREGO HEALTH OFFERS A WIDE RANGE OF SERVICES AND TREATMENTS TO OUR PATIENTS, INCLUDING PRIMARY CARE, PEDIATRIC CARE, URGENT CARE, BEHAVIORAL HEALTH, DENTAL SERVICES, SPECIALTY CARE, WOMEN'S HEALTH, CHIROPRACTIC SERVICES, TELEHEALTH AND ACCESS CLINIC. BCHF WAS ABLE TO MOBILIZE A COVID RESPONSE TEAM TO PROVIDE COVID TESTING AT DRIVE THROUGH EVENTS COORDINATED THROUGHOUT OUR SERVICE AREA AT CLINIC SITES AND MOBILE EVENTS TO MEET THE NEEDS OF THE COMMUNITY. AS VACCINES BECAME AVAILABLE, BCHF ALSO PROVIDED VACCINATION EVENTS ON DESIGNATED MOBILE UNITS AND AT CLINIC LOCATIONS. WITH THE EXCEPTION OF THE CLOSURE OF SCHOOL-BASED CLINICS AND MOBILE UNITS DUE TO COVID, BCHF WAS ABLE TO KEEP OUR CLINICS OPEN DURING COVID TO MEET THE HEALTHCARE NEEDS OF OUR PATIENTS. WE HAVE A STRONG FOCUS ON SCHOOL-BASED HEALTHCARE AND A PARTNERSHIP WITH LOCAL SCHOOL DISTRICTS COVERING OVER 500 INDIVIDUAL SCHOOLS. WE OPERATE 9 MOBILE UNITS WHICH HELP FACILITATE REMOTE CARE WITH OUR FRONT-LINE STAFF OFFERING PRIMARY HEALTH, DENTAL CARE, AND MANY PREVENTIVE MEDICINE SERVICES. BORREGO HEALTH'S SERVICES OFFERED VIA MOBILE MEDICAL UNITS INCLUDE: FAMILY MEDICINE, WOMEN'S HEALTH, WELL CHILD EXAMS, INCLUDING, PHYSICALS FOR SCHOOL, AND SPORTS PHYSICALS, IMMUNIZATIONS, SICK VISITS FOR ADULTS AND CHILDREN, FAMILY PLANNING, HIV/STI TESTING, COVID-19 TESTING, FREE PREGNANCY TESTS AND LABS.BORREGO HEALTH IS PASSIONATE ABOUT EDUCATION AND BEING PART OF THE SOLUTION TO OVERCOMING THE PHYSICIAN AND HEALTHCARE PROVIDER SHORTAGE IN SOUTHERN CALIFORNIA. WE ARE AN ACTIVE PARTNER IN THE TRAINING OF MEDICAL RESIDENTS, MEDICAL STUDENTS, NURSE PRACTITIONER STUDENTS, PHYSICIAN ASSISTANT STUDENTS, NURSING STUDENTS AND OTHER HEALTHCARE PROFESSIONALS. WE PARTNERED WITH ESTABLISHED TRAINING PROGRAMS WITH OUR HOSPITAL AND UNIVERSITY PARTNERS TO TRAIN RESIDENTS IN MEDICINE AND FAMILY MEDICINE.DURING THE YEAR, BCHF PROVIDED 313,430 MEDICAL SERVICES, 21,777 DENTAL SERVICES, AND 18,879 WOMEN'S HEALTH PATIENT CARE VISITS. ALL PROGRAMS AIM TO DELIVER CULTURALLY APPROPRIATE AND LINGUISTICALLY COMPETENT CARE. 132437783 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 0 1 162 0 1 1509 1 0 0 0 0 0 0 0 0 0 0 0 0 X 10 10 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X ROSE MACISAAC 7607676430 587 PALM CANYON DR BORREGO SPRINGS CA 92004 SANDRA HANSBERGER CHAIRPERSON 5.00 1.00 X X 0 0 0 DANIEL P ANDERSON CHAIRPERSON (UNTIL 6/21/22) 1.00 1.00 X X 0 0 0 JENNA RISA LECOMTE-HINELY SECRETARY 1.00 1.00 X X 0 0 0 KEENAN FREEMAN TREASURER 1.00 1.00 X X 0 0 0 NAKITA M HOOPER TRUSTEE 1.00 1.00 X 0 0 0 NEFTALI GALARZA TRUSTEE 1.00 1.00 X 0 0 0 CIPRIANO MARTINEZ TRUSTEE 1.00 1.00 X 0 0 0 JOSE CAMPOS TRUSTEE 1.00 1.00 X 0 0 0 MARTHA DEICHLER TRUSTEE 1.00 1.00 X 0 0 0 FRANK FIGUEROA TRUSTEE 1.00 1.00 X 0 0 0 GREG RODRIGUEZ TRUSTEE 1.00 1.00 X 0 0 0 GABRIEL MALDONADO VICE CHAIRPERSON 1.00 1.00 X X 0 0 0 EDGAR BULLOCH CHIEF EXECUTIVE OFFICER 40.00 X 485814 0 3489 SERGIO BAUTISTA DESALES CHIEF FINANCIAL OFFICER 40.00 X 188710 0 1705 VICTOR MADERO CHIEF HEALTH PLAN OFFICER 40.00 X 181900 0 7898 JORGE OTANEZ CERVANTES CHIEF MEDICAL OFFICER 40.00 X 307441 0 7970 CORINA VELASQUEZ CHIEF OPERATING OFFICER 40.00 X 247887 0 5076 DEBORAH STRELETZ DIRECTOR OF RESIDENCY PROGRAM 40.00 X 312480 0 0 MUHAMMAD ARIF DIRECTOR OF RESIDENCY PROGRAM 40.00 X 468622 0 3433 ALFREDO RATNIEWSKI MEDICAL PHYSICIAN 40.00 X 355588 0 0 CLAYTON BARBOUR MD MEDICAL PHYSICIAN 40.00 X 361097 0 9207 JAVIER HERNANDEZ MEDICAL PHYSICIAN 40.00 X 365144 0 9479 KENNETH ACHA MEDICAL PHYSICIAN 40.00 X 392030 0 0 EVAN SCHWENK MEDICAL PHYSICIAN 40.00 X 399365 0 5062 4066078 0 53319 5 0 1 0 BERKELEY RESEARCH GROUP LLC PO BOX 676158 DALLAS TX 75627 COMPLIANCE MONITORS 1829609 LA MESA PEDIATRIC MEDICAL GROUP PEDS 8881 FLETCHER PARKWAY SUITE 200 LA MESA CA 91942 CONTRACT MEDICAL SERVICES 1382535 HOOPER LUNDY & BOOKMAN PC 1875 CENTURY PARK WEST SUITE 1600 LOS ANGELES CA 90067 REGULATORY COUNSEL 1296025 ANKURA CONSULTING GROUP LLC PO BOX 74007043 CHICAGO IL 606747043 RESTRUCTURING CONSULTANTS 1071498 BROADWELL BEHAVIORAL HEALTH SERVICES INC 2048 EDINBURG AVE CARDIFF CA 92007 CONTRACT BEHAVIORAL HEALTH 998870 5 27379208 947281 28326489 PHARMACY REVENUE 621400 44517146 44517146 CAPITATION REVENUE 621400 20824220 20824220 NET PATIENT SERVICE REVENUE 621400 16582081 16582081 INCENTIVE REVENUES 621400 2873115 2873115 RESIDENCY PROGRAM 621400 542899 542899 177945 177945 85517406 4680 4680 101601 426069 -324468 -324468 -324468 GAIN/LOSS ON LEASE TRANSACTIONS 900099 879484 879484 GAIN ON LEASE SETTLEMENT 900099 324468 324468 MISCELLANEOUS INCOME 900099 56803 56803 1260755 114784862 85517406 0 940967 X 2222426 1630866 548603 42957 70540358 51641194 17552489 1346675 13808143 11916625 1380808 510710 5359105 4624985 535908 198212 2565560 1904425 660686 449 360479 267585 92831 63 17734691 13090888 4582395 61408 4647830 4505479 58664 83687 190826 184981 2409 3436 9874450 9031194 738415 104841 525169 509084 6629 9456 9565 9272 121 172 189829 57882 131947 2042611 1479172 446204 117235 1725405 1725405 MEDICAL/DENTAL/PHARMACY 28834942 28834942 LEGAL SETTLEMENT 1160831 1125277 14652 20902 MINOR EQUIPMENT 613270 594487 7741 11042 EQUIPMENT MAINTENANCE A 352509 341713 4449 6347 720039 687732 20725 11582 163478038 132437783 28511081 2529174 10595059 9992901 20092265 1940553 3150272 11197132 19669891 24643720 1114000 944120 1415295 796697 29762349 16522583 14522534 13239766 21476586 21029707 92035902 83784596 15469690 13130171 313552 929057 1132680 821060 81982387 124459891 98898309 139340179 X -6862407 -55555583 -6862407 -55555583 92035902 83784596 -48693176 0 X 0 1 X 1 1 1 X 6472051 5906844 15034520 21191638 28326489 76931542 229621622 329811742 325786956 214400145 85517406 1185137871 236093673 335718586 340821476 235591783 113843895 1262069413 0 0 0 1262069413 14483 34843 23190 12390 4680 89586 14483 34843 23190 12390 4680 89586 791354 219403 1260755 2271512 236108156 335753429 341636020 235823576 115109330 1264430511 0.99810 0.99920 0.00010 0.00010 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: MISCELLANEOUS INCOME - 2019 AMOUNT: $ 664,802. 2020 AMOUNT: $ 63,222. 2021 AMOUNT: $ 56,803. THRIFT STORE FRUGAL COYOTE - 2019 AMOUNT: $ 126,552. 2020 AMOUNT: $ 156,181. 2021 AMOUNT: $ 0. GAIN OR LOSS ON LEASE TRANSACTIONS - 2021 AMOUNT: $ 879,484. GAIN ON LEASE SETTLEMENT - 2021 AMOUNT: $ 324,468. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 842152 842152 9099728 3854715 5245013 6260199 2876023 3384176 12941440 9791845 3149595 618830 618830 13239766 ESTIMATED SETTLEMENT AMOUNTS DUE FROM THIRD-PARTY PAYERS 20600000 MEDICAL MANAGED CARE CONTRACT, NET 69445 DEPOSITS AND OTHER ASSETS 360262 21029707 LEASE LIABILITIES 204843 DEFERRED RENT LIABILITY 2584686 ESTIMATED SETTLEMENT AMOUNTS DUE TO THIRD-PARTY PAYERS 119092603 CLAIMS PAYABLE 2577759 124459891 X 114784862 0 114784862 0 114784862 163478038 0 163478038 0 163478038 PART V, LINE 4: THE ORGANIZATION INTENDS TO USE THE ENDOWMENT FUNDS TO SUPPORT GENERAL OPERATIONS. PART X, LINE 2: BCHF IS EXEMPT FROM TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND SECTION 23701D OF THE CALIFORNIA REVENUE AND TAXATION CODE AND IS GENERALLY NOT SUBJECT TO FEDERAL OR STATE INCOME TAXES. HOWEVER, BCHF IS SUBJECT TO INCOME TAXES ON ANY NET INCOME THAT IS DERIVED FROM A TRADE OR BUSINESS, REGULARLY CARRIED ON, AND NOT IN FURTHERANCE OF THE PURPOSES FOR WHICH IT WAS GRANTED AN EXEMPTION. NO INCOME TAX PROVISION HAS BEEN RECORDED AS THE NET INCOME, IF ANY, FROM ANY UNRELATED TRADE OR BUSINESS, IN THE OPINION OF MANAGEMENT, IS NOT MATERIAL TO THE FINANCIAL STATEMENTS TAKEN AS A WHOLE. GAAP REQUIRES THAT AN ORGANIZATION RECOGNIZE IN THE FINANCIAL STATEMENTS THE IMPACT OF A TAX POSITION IF THAT POSITION WILL MORE LIKELY THAN NOT BE SUSTAINED ON AN AUDIT BY FEDERAL AND STATE TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. AS OF AND FOR THE YEARS ENDED JUNE 30, 2022 AND 2021, BCHF HAD NO MATERIAL UNRECOGNIZED TAX BENEFITS, TAX PENALTIES, OR INTEREST. AS OF JUNE 30, 2022, INFORMATION RETURNS SUBSEQUENT TO 2018 FILED BY BCHF ARE SUBJECT TO EXAMINATION BY THE TAXING AUTHORITIES. X 1 0 X X X X 0 1 0 0 0 0 0 0 0 EDGAR BULLOCH CHIEF EXECUTIVE OFFICER 411600 0 50000 0 24214 0 0 0 3489 0 489303 0 0 0 MUHAMMAD ARIF DIRECTOR OF RESIDENCY PROGRAM 285075 0 2000 0 181547 0 0 0 3433 0 472055 0 0 0 EVAN SCHWENK MEDICAL PHYSICIAN 171390 0 2000 0 225975 0 0 0 5062 0 404427 0 0 0 KENNETH ACHA MEDICAL PHYSICIAN 201085 0 2000 0 188945 0 0 0 0 0 392030 0 0 0 JAVIER HERNANDEZ MEDICAL PHYSICIAN 205031 0 2000 0 158113 0 0 0 9479 0 374623 0 0 0 CLAYTON BARBOUR MD MEDICAL PHYSICIAN 317502 0 2000 0 41595 0 0 0 9207 0 370304 0 0 0 ALFREDO RATNIEWSKI MEDICAL PHYSICIAN 265434 0 0 0 90154 0 0 0 0 0 355588 0 5818 0 JORGE OTANEZ CERVANTES CHIEF MEDICAL OFFICER 271397 0 1500 0 34544 0 0 0 7970 0 315411 0 0 0 DEBORAH STRELETZ DIRECTOR OF RESIDENCY PROGRAM 277174 0 2000 0 33306 0 0 0 0 0 312480 0 0 0 CORINA VELASQUEZ CHIEF OPERATING OFFICER 213795 0 1500 0 32592 0 0 0 5076 0 252963 0 6941 0 SERGIO BAUTISTA DESALES CHIEF FINANCIAL OFFICER 172625 0 750 0 15335 0 0 0 1705 0 190415 0 0 0 VICTOR MADERO CHIEF HEALTH PLAN OFFICER 148970 0 1500 0 31430 0 0 0 7898 0 189798 0 0 0 PART I, LINE 1B THE ORGANIZATION HAS A LIFE INSURANCE WELFARE PLAN THAT PROVIDES LIFE INSURANCE BENEFITS. ALL 12 COMPENSATED OFFICERS, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES LISTED IN PART VII OF FORM 990 PARTICIPATED IN THE WELFARE BENEFIT PLAN DURING THE YEAR. THE LIFE INSURANCE IS FUNDED BY THE EMPLOYER'S BONUS PAYMENTS TO EMPLOYEES WHO ARE CONSIDERED "TOP HAT" EMPLOYEES. THE BONUSES ARE GROSSED-UP FOR INCOME TAXES TO ASSIST THE EMPLOYEE WITH THE PAYMENT OF FEDERAL AND STATE TAXES ON THE AMOUNTS PAYABLE TO THE EMPLOYEE PURSUANT TO THE PLAN. THE YEARLY BONUSES ARE INCLUDED IN THE EMPLOYEE'S TAXABLE COMPENSATION ON FORM W-2. THE PLAN WAS TERMINATED IN 2021. PART I, LINE 4B BORREGO COMMUNITY HEALTHCARE FOUNDATION HAS ESTABLISHED A NON-QUALIFIED PLAN PURSUANT TO 457(F) OF THE INTERNAL REVENUE CODE. THE PURPOSE OF THIS PLAN IS TO INCENTIVIZE THE ORGANIZATION'S OFFICERS AND SENIOR MANAGEMENT IN RECOGNITION OF THE FACT THAT THEY ARE REQUIRED TO DEVOTE SIGNIFICANT AMOUNTS OF TIME, SKILL AND ENERGY TO THE ORGANIZATION. THE AMOUNTS DEFERRED ARE SUBJECT TO SUBSTANTIAL RISK OF FORFEITURE. ONCE VESTED THE AMOUNTS UNDER THIS PLAN ARE REPORTED ON FORM W-2 AS TAXABLE COMPENSATION TO THE INDIVIDUAL. THE PLAN WAS TERMINATED IN 2021. ALFREDO RATNIEWSKI RECEIVED A PAYMENT OF $5,818 CORINA VELASQUEZ RECEIVED A PAYMENT OF $6,941 SEE SCH O PAGE 49 0 0 0 BRENDA FIGUEROA FAMILY MBR OF DAOUD GHAFARI A FORMER KEY EMPLOYEE 295770 PAYROLL 0 KAREN HEBETS FAMILY MBR OF BRUCE HEBETS A FORMER OFFICER 87895 PAYROLL 0 JANET RATNIEWSKI FAMILY MBR OF ALFREDO RATNIEWSKI A KEY EMPLOYEE 140231 PAYROLL 0 DENISE GORDON FAMILY MBR OF ALFREDO RATNIEWSKI A KEY EMPLOYEE 6732 PARYOLL 0 NIDIA HERRERA FAMILY MBR OF ANNA NAVARRO A FORMER KEY EMPLOYEE 141326 PAYROLL 0 PHILIP WATKINSON FAMILY MBR OF CYNTHIA PRECIADO A FORMER KEY EMPLOYEE 78301 PAYROLL 0 DAISY CERVANTES FAMILY MBR OF NEREIDA TERRAZAS A FORMER KEY EMPLOYEE 84995 PAYROLL 0 JUSTYNE NAVARRO FAMILY MBR OF ANNA NAVARRO A FORMER KEY EMPLOYEE 32723 PAYROLL 0 TIFFANY HEBETS FAMILY MBR OF BRUCE HEBETS A FORMER OFFICER 49177 PAYROLL 0 GASTON DEL BOSQUE FAMILY MBR OF NANCY PEALING A FORMER KEY EMPLOYEE 85909 PAYROLL 0 SANDRA PEELING FAMILY MBR OF NANCY PEALING A FORMER KEY EMPLOYEE 32976 PAYROLL 0 JENENNE VELASQUEZ FAMILY MBR OF CORINA VELASQUEZ A KEY EMPLOYEE 74775 PAYROLL 0 BENNIE VELASQUEZ FAMILY MBR OF CORINA VELASQUEZ A KEY EMPLOYEE 29733 PAYROLL 0 NEREDIA YANEZ FAMILY MBR OF CORINA VELASQUEZ A KEY EMPLOYEE 129125 PAYROLL 0 LUIS TRONCOSO FAMILY MBR OF DIANA THOMPSON A FORMER OFFICER 50927 PAYROLL 0 BREANDA TRONCOSO FAMILY MBR OF DIANA THOMPSON A FORMER OFFICER 51553 PAYROLL 0 STEPHANIE HEYDT FAMILY MBR OF JOHN HEYDT A FORMER KEY EMPLOYEE 10533 PAYROLL 0 JEREMY NOBLE FAMILY MBR OF MIKIA WALLIS A FORMER OFFICER 123711 PAYROLL 0 FORM 990, PART III, LINE 3 IN JUNE 2021, FOLLOWING SIGNIFICANT CHALLENGES DURING THE PREVIOUS 18 MONTHS AND THE CESSATION OF ITS CONTRACT DENTAL PROGRAM, AND SIGNIFICANT DROP IN REVENUE, BORREGO HEALTH ANNOUNCED A SIGNIFICANT REORGANIZATION OF ITS LEADERSHIP TEAM AND ANNOUNCED THE TRANSFER OF ITS OPERATIONS OF THE CHILDREN'S CENTER IN BORREGO SPRINGS AND THE FRUGAL COYOTE IN BORREGO TO ANOTHER NON-PROFIT AND ALSO CLOSED ITS ASSISTED LIVING FACILITY IN BORREGO SPRINGS. EFFECTIVE FEBRUARY 2022, BORREGO HEALTH IMPLEMENTED A NUMBER OF ADDITIONAL CLINIC CLOSURES, TRANSFERS, OR CONSOLIDATION OF CLINICS, INCLUDING THE DESERT OASIS WOMEN'S HEALTH CENTER, TWO CLINICS IN SAN BERNADINO, AND BEGAN THE PROCESS OF TRANSFERRING OF SEVERAL CLINICS IN RIVERSIDE. IN ADDITION, BORREGO HEALTH TERMINATED OTHER CONTRACT RELATIONSHIPS. OTHER CHANGES INCLUDED OUTSOURCING ITS BILLING DEPARTMENT, AND CLOSED OR REPURPOSED SEVERAL MOBILE UNITS. IN MAY 2022, AS PART OF AN IMPENDING REORGANIZATION PLAN, BORREGO ANNOUNCED THE LAYOFF OF 218 ADDITIONAL EMPLOYEES. FORM 990, PART VI, SECTION A, LINE 4 AMONG OTHER POLICIES, THE FOLLOWING KEY POLICIES WERE CHANGED AND IMPLEMENTED: - IN ADDITION TO ADOPTING A ROBUST COMPLIANCE PROGRAM, THE BOARD ADOPTED A NEW CHARTER FOR THE BOARD'S AUDIT COMMITTEE, WHICH BECAME THE AUDIT AND COMPLIANCE COMMITTEE. THIS COMMITTEE BEGAN RECEIVING MONTHLY UPDATES ON COMPLIANCE MATTERS. -THE BOARD MADE SEVERAL REVISIONS TO ITS RECORD KEEPING POLICY, CEO EVALUATION POLICY, AND ITS CONFLICT-OF-INTEREST POLICIES. IN ADDITION, THE BOARD AUTHORIZED CHANGES TO ITS MANAGEMENT STRUCTURE, INCLUDING THE ELIMINATION OF CERTAIN POSITIONS AT THE EXECUTIVE LEVEL, AND THE RE-CREATION OF A CHIEF LEGAL OFFICER, CHIEF COMPLIANCE OFFICER, AND CHIEF RESTRUCTURING OFFICER. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 WAS REVIEWED BY THE EXECUTIVE COMMITTEE OF THE BOARD AND THE CHIEF EXECUTIVE OFFICER AND THEN WAS PRESENTED AT A SPECIAL SESSION OF THE BOARD. FOLLOWING THIS REVIEW, A COMPLETE COPY OF THE FORM 990, INCLUDING ALL SCHEDULES, WAS PROVIDED TO EACH VOTING MEMBER OF THE BOARD OF TRUSTEES PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS A CONFLICT OF INTEREST AND ETHICS POLICY. UNDER THE POLICY, "COVERED PERSONS" (DEFINED AS ANY MEMBER OF THE ORGANIZATION'S BOARD OF TRUSTEES, ANY MEMBER OF A COMMITTEE OF THE BOARD OF TRUSTEES THAT ADVISES THE BOARD OR ACTS WITH THE DELEGATED AUTHORITY OF THE BOARD, ANY BOARD-APPOINTED OFFICER, AND ANY OTHER KEY EMPLOYEE OF BORREGO HEALTH WITH THE POWER TO ENTER INTO A MATERIAL FINANCIAL ARRANGEMENT ON BEHALF OF THE ORGANIZATION) ARE REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTEREST QUESTIONNAIRE. ALL EMPLOYEES ARE SUBJECT TO WRITTEN STANDARDS OF CONDUCT COVERING CONFLICTS OF INTEREST AND GOVERNING THE ACTIONS OF THOSE ENGAGED IN THE SELECTION, AWARD, OR ADMINISTRATION OF CONTRACTS. THE ORGANIZATION MAINTAINS A RECORD OF ALL ACTUAL OR POTENTIAL CONFLICTS OF INTEREST DISCLOSED BY COVERED PERSONS THAT IS AVAILABLE FOR REVIEW BY ALL TRUSTEES. UPON RECEIVING A DISCLOSURE REGARDING AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, THE CHAIR OF THE BOARD OR THE VICE CHAIR OF THE BOARD MUST PROMPTLY REFER THE DISCLOSURE TO THE BOARD OF TRUSTEES OR THE EXECUTIVE COMMITTEE FOR EVALUATION AND, AS NEEDED, FOR APPROPRIATE ACTION. PERSONS ARE PROHIBITED FROM PARTICIPATING IN THE DELIBERATION OF ANY TRANSACTION IN WHICH THEY HAVE A CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES HAS A PROCESS FOR REVIEWING AND APPROVING THE COMPENSATION OF KEY EMPLOYEES ON A REGULAR BASIS TO DETERMINE IT IS FAIR AND REASONABLE WITH THE GOAL OF RETAINING EMPLOYEES AT COMPENSATION LEVELS WITHIN APPROPRIATE MARKET RANGE. THE BOARD OF TRUSTEES SETS THE SALARIES OF THE CEO, CFO AND OTHER KEY EMPLOYEES BASED ON COMPARABLE MARKET DATA OF SIMILAR SIZED ORGANIZATIONS AND INDUSTRY. THE RESULTS OF THE STUDY WERE PRESENTED TO THE FULL BOARD AND THE FULL BOARD VOTED ON THE COMPENSATION OFFERED TO THE CEO, CFO AND OTHER KEY EMPLOYEES. THE PROCESS FOR DETERMINING THE COMPENSATION FOR THE CEO AND OTHER KEY EMPLOYEES IS SET OUT IN MULTIPLE ORGANIZATION POLICIES AND PROCEDURES INCLUDING THE BYLAWS, A "CEO EVALUATION POLICY AND THE ORGANIZATION'S PERSONNEL COMMITTEE CHARTER. THE ORGANIZATION'S BOARD OF TRUSTEES CONTEMPORANEOUSLY DOCUMENTED ITS DELIBERATIONS AND DECISIONS REGARDING THE COMPENSATION ARRANGEMENTS, INCLUDING WHO WAS PRESENT, HOW THEY VOTED, A DESCRIPTION OF THE COMPARABILITY DATA AND HOW IT WAS OBTAINED. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS FINANCIAL STATEMENTS AVAILABLE UPON REQUEST. CERTAIN ORGANIZATIONAL DOCUMENTS ARE ALSO PUBLICLY AVAILABLE THROUGH THE CALIFORNIA SECRETARY OF STATE'S OFFICE. FORM 990, PART IX, LINE 11G INTERPRETING SERVICES: PROGRAM SERVICE EXPENSES 187,614. MANAGEMENT AND GENERAL EXPENSES 65,087. FUNDRAISING EXPENSES 44. TOTAL EXPENSES 252,745. DATA PROCESSING: PROGRAM SERVICE EXPENSES 3,298,329. MANAGEMENT AND GENERAL EXPENSES 1,144,261. FUNDRAISING EXPENSES 777. TOTAL EXPENSES 4,443,367. PROFESSIONAL STAFFING AGENCY: PROGRAM SERVICE EXPENSES 980,975. MANAGEMENT AND GENERAL EXPENSES 340,321. FUNDRAISING EXPENSES 231. TOTAL EXPENSES 1,321,527. LAB SERVICE FEE: PROGRAM SERVICE EXPENSES 587,784. MANAGEMENT AND GENERAL EXPENSES 203,915. FUNDRAISING EXPENSES 138. TOTAL EXPENSES 791,837. PROFESSIONAL SERVICES : PROGRAM SERVICE EXPENSES 8,036,186. MANAGEMENT AND GENERAL EXPENSES 2,828,811. FUNDRAISING EXPENSES 60,218. TOTAL EXPENSES 10,925,215. FORM 990, PART IX, LINE 24E TAXES AND LICENSES: PROGRAM SERVICE EXPENSES 288,296. MANAGEMENT AND GENERAL EXPENSES 3,754. FUNDRAISING EXPENSES 5,355. TOTAL EXPENSES 297,405. MARKETING: PROGRAM SERVICE EXPENSES 202,060. MANAGEMENT AND GENERAL EXPENSES 2,631. FUNDRAISING EXPENSES 3,753. TOTAL EXPENSES 208,444. STORAGE RENT: PROGRAM SERVICE EXPENSES 94,904. MANAGEMENT AND GENERAL EXPENSES 13,005. FUNDRAISING EXPENSES 571. TOTAL EXPENSES 108,480. DUES AND MEMBERSHIPS : PROGRAM SERVICE EXPENSES 60,788. MANAGEMENT AND GENERAL EXPENSES 792. FUNDRAISING EXPENSES 1,129. TOTAL EXPENSES 62,709. EMPLOYEE RECOGNITION PROGRAM EXPENSES: PROGRAM SERVICE EXPENSES 38,613. MANAGEMENT AND GENERAL EXPENSES 503. FUNDRAISING EXPENSES 717. TOTAL EXPENSES 39,833. EDUCATIONAL MATERIALS: PROGRAM SERVICE EXPENSES 2,974. MANAGEMENT AND GENERAL EXPENSES 39. FUNDRAISING EXPENSES 55. TOTAL EXPENSES 3,068. MISCELLANEOUS EXPENSES : PROGRAM SERVICE EXPENSES 97. MANAGEMENT AND GENERAL EXPENSES 1. FUNDRAISING EXPENSES 2. TOTAL EXPENSES 100. SCHEDULE L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSON ADDITIONAL INFORMATION: ON 11/2021 THE BOARD ADOPTED A RIGOROUS POLICY RELATING TO EMPLOYMENT OF RELATIVES AND ENSURING THAT ALL SUCH RELATIONSHIPS WERE REVIEWED BY THE BOARD TO ENSURE THAT EMPLOYEES WERE NOT SUPERVISED BY RELATIVES AND THAT ANY SUCH RELATIONSHIPS COULD NOT INFLUENCE INTERNAL CONTROLS. SCHEDULE L, PART I, EXCESS BENEFIT TRANSACTIONS DURING THE TAX YEAR JULY 1, 2021, THROUGH JUNE 30, 2022, BCHF LEASED THREE DIFFERENT OFFICE SPACES FOR ITS CLINICAL AND ADMINISTRATIVE SERVICES FROM PROMENADE SQUARE, LLC, DRP HOLDINGS, LLC, AND INLAND VALLEY INVESTMENTS, LLC, RESPECTIVELY. BORREGO BELIEVES THAT THE RENT CHARGED IN ALL THREE LEASES WAS ABOVE FAIR MARKET VALUE RENT, CREATING POTENTIAL EXCESS BENEFIT TRANSACTIONS. EACH OF THE THREE LESSORS WERE ENTITIES AFFILIATED WITH DARYL PRIEST, AN INDIVIDUAL WHOM BCHF HAS IDENTIFIED AS A POTENTIAL "DISQUALIFIED PERSON" WITH RESPECT TO THE LEASES UNDER THE INTERMEDIATE SANCTIONS RULES (IRC SECTION 4958(F)(1)(A)-(C); TREAS. REGS. SECTION 53.4958). NONE OF THE LEASES WERE SUBMITTED TO BCHF'S FULL BOARD FOR ANALYSIS, REVIEW, AND INFORMED CONSENT AND APPROVAL. WHILE TWO OF THE LEASES WERE TERMINATED AS OF JANUARY 31, 2022, ONE LEASE REMAINED IN OPERATION DURING THE TAX YEAR BY BCHF, WITH BCHF PAYING TWICE FAIR MARKET RENT UNDER PROTEST, AS IT SERVED AS A CRITICAL CLINIC OR BCHF TO DELIVER ESSENTIAL SERVICES TO ITS PATIENTS. HOWEVER, IN AN EFFORT TO CORRECT THE OVERPAYMENTS (AMONG OTHER ISSUES), BCHF BROUGHT SUIT AGAINST THE THREE LESSOR ENTITIES ON JUNE 4, 2021, SEEKING DAMAGES FOR RENT ABOVE MARKET PAID BY BCHF DURING THE TERM OF EACH LEASE. THE LITIGATION IS ENTITLED BORREGO COMMUNITY HEALTH FOUNDATION V. INLAND VALLEY, LLC, ET AL., CASE NO. 21CV1417-BEN(SBC) (S.D. CAL.) AND REMAINS ONGOING, WITH THE DISPUTED RENT PAYMENTS CURRENTLY STORED IN AN INTERPLEADER FUND PENDING RESOLUTION OF THE ACTION. DESERT HOME CARE PO BOX 1175 BORREGO SPRINGS CA 92004 330847516 HOME HEALTH SKILLED NURSING CA 501(C)(3) 12A BORREGO COMMUNITY HEALTH FOUNDATION 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 DESERT HOME CARE C 112263 BOOK VALUE