2012-08-07T11:57:46-05:00 2011-09-30 SEIM JOHNSON LLP 18081 BURT STREET SUITE 200 OMAHA NE 680224722 990 2010-10-01 470375220 MEMORIAL HEALTH CARE SYSTEMS MEMO 4026432971 300 NORTH COLUMBIA AVENUE SEWARD NE 68434 GREG JERGER 4026432971 2012-08-03 1 BARBARA J FAJEN 4023302660 2010 2016-02-24 21:20:13Z GREG JERGER 300 NORTH COLUMBIA AVENUE SEWARD NE 68434 25966700 0 X WWW.MHCS.US X 1956 NE WE PROVIDE HOSPITAL ACUTE INPATIENT, SKILLED NURSING, AND OUTPATIENT SERVICES FOR THE RESIDENTS OF OUR COMMUNITY. WE PROVIDE FAMILY PRACTICE PHYSICIAN CLINIC SERVICES TO THE COMMUNITIES IN OUR SERVICE AREA. 7 7 273 35 0 0 876360 50624 23756529 24960170 817390 701979 248362 249246 25698641 25962019 0 0 0 0 13174375 13661165 0 0 0 9509629 9955152 22684004 23616317 3014637 2345702 37522998 41733037 2890419 3680334 34632579 38052703 WE ENHANCE THE QUALITY OF LIFE FOR INDIVIDUALS IN OUR COMMUNITIES BY PROVIDING EXCELLENCE IN HEALTH CARE SERVICES IN THE MOST APPROPRIATE SETTINGS. 0 0 9881980 12504424 HOSPITAL OUTPATIENT SERVICES 4262242 5393341 HOSPITAL ACUTE INPATIENT AND SKILLED NURSING SERVICES 6255123 7163801 FAMILY PRACTICE PHYSICIAN CLINIC SERVICES 20399345 1 1 0 1 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 55 0 1 273 1 0 0 0 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 0 1 1 1 1 1 1 1 0 X GREG JERGER 4026464628 300 NORTH COLUMBIA SEWARD NE 68434 MIKE HECKER 6.00 X X 0 0 0 LARRY LINDQUIST 6.00 X X 0 0 0 JAMES SWANSON 6.00 X X 0 0 0 DONNA HAVENER 4.00 X 0 0 0 TRISH LINDNER 4.00 X 0 0 0 MARLIN POZEHL 4.00 X 0 0 0 BYRON WINTER 4.00 X 0 0 0 ROGER REAMER 50.00 X 216941 0 21929 GREG JERGER 50.00 X 204605 0 28816 JARED KETNER 55.00 X 258805 0 29030 LORANCE NEWBURN 55.00 X 353302 0 30141 CONNIE NOVAK 55.00 X 247006 0 35388 JAMES PLASEK 55.00 X 339761 0 33449 ROBERT WERGIN 55.00 X 355171 0 40345 1975591 0 219098 15 0 1 0 SAMPSON CONSTRUCTION COMPANY 3730 SOUTH 14TH ST LINCOLN NE 68502 CONSTRUCTION SERVICES 1030206 BRYANLGH MEDICAL CENTER 1600 S 48TH STREET LINCOLN NE 68506 DIAGNOSTIC TESTING 277362 COMPUTER INNOVATIONS LLC 112 E 11TH ST SCHUYLER NE 68661 INFORMATION SYSTEMS SUPPORT 151435 SHARED MEDICAL SERVICES PO BOX 330 COTTAGE GROVE WI 53527 DIAGNOSTIC TESTING 119885 SOUTHEAST NEBRASKA MOBILE DIAGNOSTIC SER 245 S 84TH ST LINCOLN NE 68510 DIAGNOSTIC TESTING 104114 5 50624 50624 NET PATIENT REVENUE 621400 17234372 17234372 MEDICARE 621400 6935652 6935652 MEDICAID 621400 769662 769662 HEALTH FAIR 624100 20484 20484 24960170 703490 703490 1511 -1511 -1511 -1511 7895 3170 4725 4725 MISCELLANEOUS 624100 105186 101396 3790 DAY CARE REVENUE 624100 91951 91951 DIETARY REVENUE 623990 47384 47384 244521 25962019 25061566 0 849829 472291 472291 66896 66896 11004608 9687775 1316833 265401 235457 29944 1136079 997112 138967 715890 607608 108282 27861 27861 29831 29831 2095500 1643252 452248 115597 73766 41831 4846747 4616638 230109 6086 6086 372321 372321 742 742 1357 1357 1506261 1248900 257361 248224 207112 41112 BAD DEBTS 524141 524141 TRAINING & EDUCATION 77726 50662 27064 DUES & SUBSCRIPTIONS 75880 34766 41114 PHYSICIAN EXPENSES 22707 22707 FOUNDATION EXPENSES 1176 1176 2995 871 2124 23616317 20399345 3216972 0 250 250 16812331 17675139 2693016 2883144 564612 608325 162951 181169 26805121 15263279 11601673 11541842 2159889 4872306 6016035 815859 667244 37522998 41733037 2244409 2489584 646010 1190750 2890419 3680334 X 28211132 30532255 88050 39302 6333397 7481146 34632579 38052703 37522998 41733037 X 2345702 1074422 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 3829 3829 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: A PORTION OF DUES PAID TO NHA AND AHA IS DEDICATED TO LOBBYING ACTIVITIES. 1549141 4020 -48748 1504413 655664 823751 69726 1549141 578536 520 76608 655664 0.00000 1.00000 0.00000 0 0 320907 320907 9333563 5434525 3899038 15677195 9258378 6418817 1473456 570376 903080 11541842 BENEFICIAL INTEREST IN A PERPETUAL TRUST 6016035 F 6016035 EST. THIRD PARTY SETTLEMENTS 523693 DEFERRED COMPENSATION LIABILITY 667057 1190750 25962019 23616317 2345702 -69307 1143729 1074422 3420124 27036441 -69307 1143729 1074422 25962019 0 25962019 23616317 0 23616317 0 23616317 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: INCOME FROM THE HOSPITAL ENDOWMENT FUND WILL BE USED FOR MEMORIAL HOSPITAL TO ENHANCE AND IMPROVE THE QUALITY OF HOSPITAL SERVICES PROVIDED TO THE COMMUNITY. THIS COULD TAKE THE FORM OF KEEPING UP WITH CHANGING TECHNOLOGY, ACQUIRING THE BEST EQUIPMENT, OR IMPROVING OUR BUILDING FACILITIES. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE SYSTEM IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE CODE. THE INTERNAL REVENUE SERVICE HAS ESTABLISHED STANDARDS TO BE MET TO MAINTAIN TAX EXEMPT STATUS. IN GENERAL, SUCH STANDARDS REQUIRE THE SYSTEM TO MEET A COMMUNITY BENEFIT STANDARD AND COMPLY WITH VARIOUS LAWS AND REGULATIONS. THE SYSTEM ACCOUNTS FOR UNCERTAINTIES IN ACCOUNTING FOR INCOME TAX ASSETS AND LIABILITIES USING GUIDANCE INCLUDED IN FASB ASC 740, INCOME TAXES. THE SYSTEM RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS ONLY IF THOSE POSITIONS ARE MORE LIKELY THAN NOT OF BEING SUSTAINED. DURING 2011 AND 2010, MANAGEMENT DETERMINED THAT THERE ARE NO INCOME TAX PROVISIONS REQUIRING RECOGNITION AND AT SEPTEMBER 30, 2011 AND 2010, THE SYSTEM HAD NO UNCERTAIN TAX POSITIONS ACCRUED. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN INTEREST IN BENEFICIAL TRUST 1,143,729. PART XII, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN INTEREST IN BENEFICIAL TRUST 1,143,729. 1 1 1 X 1 X 1 1 0 0 122812 122812 0.00530 1257761 1011859 245902 0.01060 1380573 1011859 368714 0.01590 1380573 1011859 368714 0.01590 0 394573 8805967 8861026 -55059 X 1 1 1 1 MEMORIAL HOSPITAL

300 N COLUMBIA AVE SEWARD NE 68434

X X X X NOT APPLICABLE 1 4 SEWARD FAMILY MEDICAL CENTER

250 N COLUMBIA AVE SEWARD NE 68434

RURAL HEALTH CLINIC SEWARD FAMILY PHARMACY

250 N COLUMBIA AVE SEWARD NE 68434

PHARMACY - CONVENIENCE OF PATIENT/EMPLOYEE MILFORD FAMILY MEDICAL CENTER

119 S C ST MILFORD NE 68405

RURAL HEALTH CLINIC UTICA FAMILY MEDICAL CENTER

100 4TH ST UTICA NE 68456

RURAL HEALTH CLINIC PART I, LINE 7: THE ORGANIZATION USED THE COST-TO-CHARGE RATIO FROM WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGES, PROVIDED BY THE IRS IN THE INSTRUCTIONS OF FORM 990, SCHEDULE H. PART I, LINE 7G: THERE ARE NO COSTS REPORTED ON LINE 7G. THEREFORE, THERE WOULD BE NO COSTS ATTRIBUTABLE TO A PHYSICIAN CLINIC INCLUDED ON LINE 7G. PART I, L7 COL(F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 24, COLUMN (A) BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $524,141. PART II: THERE ARE NOT COMMUNITY BUILDING ACTIVITIES TO REPORT. PART III, LINE 4: THERE IS NO FOOTNOTE IN THE ORGANIZATION'S FINANCIAL STATEMENTS THAT DESCRIBES BAD DEBT EXPENSE. HOWEVER, THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TITLED "PATIENT ACCOUNTS RECEIVABLE, NET":THE SYSTEM REPORTS PATIENT ACCOUNTS RECEIVABLE FOR SERVICES RENDERED AT NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYERS, PATIENTS AND OTHERS. THE SYSTEM PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS BASED UPON A REVIEW OF OUTSTANDING RECEIVABLES, HISTORICAL COLLECTION INFORMATION AND EXISTING ECONOMIC CONDITIONS.THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TITLED "NET PATIENT SERVICE REVENUE":NET PATIENT SERVICE REVENUE IS REPORTED AT THE ESTIMATED NET REALIZABLE AMOUNTS FROM PATIENTS, THIRD-PARTY PAYORS, AND OTHERS FOR SERVICES RENDERED, INCLUDING ESTIMATED RETROACTIVE ADJUSTMENTS UNDER REIMBURSEMENT AGREEMENTS WITH THIRD-PARTY PAYORS. RETROACTIVE ADJUSTMENTS ARE ACCRUED ON AN ESTIMATED BASIS IN THE PERIOD THE RELATED SERVICES ARE RENDERED AND ADJUSTED IN FUTURE PERIODS AS FINAL SETTLEMENTS ARE DETERMINED.THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TITLED "CHARITY CARE":THE SYSTEM PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS CHARITY CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN ITS ESTABLISHED RATES. BECAUSE THE SYSTEM DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED IN THE STATEMENTS OF OPERATIONS.THE SYSTEM IS DEDICATED TO PROVIDING COMPREHENSIVE HEALTHCARE SERVICES TO ALL SEGMENTS OF SOCIETY, INCLUDING THE AGED AND OTHERWISE ECONOMICALLY DISADVANTAGED. IN ADDITION, THE SYSTEM PROVIDES A VARIETY OF COMMUNITY HEALTH SERVICES AT OR BELOW COST.THE ORGANIZATION USED THE COST TO CHARGE RATIO CALCULATED IN WORKSHEET A OF THE MEDICARE COST REPORT FOR THE YEAR ENDED SEPTEMBER 30,2011. THERE IS LIKELY A PORTION OF THE COST OF BAD DEBT THAT SHOULD BE CONSIDERED COMMUNITY BENEFITS AS SOME OF THOSE PEOPLE LIKELY WOULD HAVE QUALIFIED FOR CHARITY CARE. HOWEVER, THE ORGANIZATION IS UNABLE TO DETERMINE AN ESTIMATED AMOUNT FOR THIS AND HAVE NOT INCLUDED ANY OF THE COST OF BAD DEBTS ON PART III, LINE 3. PART III, LINE 8: THE ORGANIZATION USED VARIOUS WORKSHEETS FROM THE MEDICARE COST REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2011 TO CALCULATE PART III, LINES 5 AND 6. MEDICARE CURRENTLY PAYS CRITICAL ACCESS HOSPITALS (CAH) 101% OF ALLOWABLE COSTS. MEDICARE PAYS THE ORGANIZATION'S RURAL HEALTH CLINICS (RHC) AT COST SUBJECT TO CERTAIN LIMITS. THERE IS GENERALLY NO MEDICARE SHORTFALL ON CAH AND RHC SERVICES. THE SHORTFALL IS ALL GENERATED BY NON-RHC PHYSICIAN SERVICES THAT ARE PAID UNDER THE MEDICARE FEE SCHEDULE. MEDICARE SHORTFALLS IN PAYMENT SHOULD BE CONSIDERED A COMMUNITY BENEFIT AS IT IS PART OF THE ORGANIZATION'S MISSION TO PROVIDE THESE SERVICES EVEN IF MEDICARE REIMBURSEMENT IS BELOW COST. PART III, LINE 9B: PATIENTS THAT ARE KNOWN TO QUALIFY FOR CHARITY CARE EITHER RECEIVE FREE EMERGENCY AND URGENT CARE IN THE HOSPITAL IF THEY ARE AT OR BELOW 150% OF POVERTY, OR A SLIDING DISCOUNT IF THEY ARE AT OR BELOW 250% OF POVERTY. SHOULD THESE PATIENTS OWE A PORTION OF THEIR BILL, THE ORGANIZATION FOLLOWS THE SAME COLLECTION POLICY AS IT DOES FOR PATIENTS WHO DO NOT QUALIFY FOR CHARITY CARE. PART VI, LINE 2: THE ORGANIZATION IS GOVERNED BY A VOLUNTEER BOARD OF DIRECTORS WHICH HAS 7 MEMBERS FROM THE COMMUNITY. THE BOARD OF DIRECTORS ASSISTS HOSPITAL ADMINISTRATION IN IDENTIFYING SERVICES NEEDED BY THE COMMUNITIES SERVED. PART VI, LINE 3: THE BUSINESS OFFICE IS EDUCATED ON HOW TO INFORM PATIENTS ABOUT THE PROCESS OF APPLYING FOR MEDICAID COVERAGE. THE OPPORTUNITY FOR FINANCIAL ASSISTANCE THROUGH OUR CHARITY CARE POLICY IS LISTED ON THE ORGANIZATION'S WEB-SITE, AND A STATEMENT ABOUT THIS IS INCLUDED WITH THE FINANCIAL AGREEMENT EACH PATIENT SIGNS AND IS ALSO INCLUDED WITH BILLINGS STATEMENTS SENT TO THE PATIENT. PART VI, LINE 4: THE ORGANIZATION'S PRIMARY SERVICE AREA IS SEWARD COUNTY, NEBRASKA, WHICH HAS A POPULATION OF AROUND 17,000. IT MAINLY PROVIDE PRIMARY CARE SERVICES WITH SOME SPECIALTY CARE OFFERED BY VISITING SPECIALISTS THAT PRACTICE HERE MAINLY OUT OF LINCOLN, NEBRASKA. PART VI, LINE 6: THE ORGANIZATION OFFERS EXTENSIVE HEALTHCARE AND WELLNESS EDUCATION TO THE COMMUNITY ON AN ON-GOING BASIS. THE COSTS FOR THESE SERVICES ARE NOT SEPARATELY IDENTIFIED AS "COMMUNITY BENEFIT" EXPENSES ELSEWHERE IN THIS RETURN. IT IS LIKELY THESE COSTS EXCEED $100,000 PER YEAR, AND THERE IS NO OFFSETTING REVENUE. THE HOSPITAL MAINTAINS AN OPEN MEDICAL STAFF AND HAS A GOVERNING BOARD OF DIRECTORS WHICH ARE ALL MEMBERS OF THE COMMUNITY SERVED. ALL SURPLUS FUNDS ARE USED TO FURTHER THE MISSION OF PROVIDING EXCELLENT HEALTHCARE SERVICES TO THE MEMBERS OF THE COMMUNITIES SERVED. PART VI, LINE 7: N/A X 1 1 X X X 0 1 0 1 0 0 0 0 0 ROGER REAMER 182431 0 34510 0 0 0 6142 0 15787 0 238870 0 0 0 GREG JERGER 171347 0 33258 0 0 0 5875 0 22941 0 233421 0 0 0 JARED KETNER 155404 0 103401 0 0 0 7350 0 21680 0 287835 0 0 0 LORANCE NEWBURN 155404 0 197898 0 0 0 7350 0 22791 0 383443 0 0 0 CONNIE NOVAK 155404 0 91602 0 0 0 7350 0 28038 0 282394 0 0 0 JAMES PLASEK 155404 0 184357 0 0 0 7350 0 26099 0 373210 0 0 0 ROBERT WERGIN 155404 0 199767 0 0 0 21750 0 18595 0 395516 0 0 0 PART I, LINE 1A THE ORGANIZATION PROVIDES A SECTION 162 BONUS PLAN IN WHICH THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER RECEIVE TAXABLE COMPENSATION ON AN ANNUAL BASIS TO PURCHASE LIFE INSURANCE AND/OR DISABILITY INSURANCE. THE BONUS PLAN AND AMOUNT WERE ESTABLISHED BY THE BOARD OF DIRECTORS AND ARE GROSSED-UP PER THE PLAN DESIGN IN ORDER TO PROVIDE A FIXED AMOUNT AFTER TAXES THAT IS AVAILABLE FOR INSURANCE PREMIUMS. THE FULL TAXABLE AMOUNT IS INCLUDED IN BOX 5 OF THE W-2 AND HAS BEEN INCLUDED IN PART II OF THIS SCHEDULE J UNDER COLUMN B(II). PART I, LINE 4B $14,400 WAS CONTRIBUTED INTO A 457(F) DEFERRED COMPENSATION PLAN FOR ROBERT WERGIN, MD. PART I, LINE 5 PHYSICIANS RECEIVE BONUSES BASED ON THEIR INDIVIDUAL PROFESSIONAL CHARGES. FORM 990, PART VI, SECTION A, LINE 6 MEMORIAL HEALTH CARE SYSTEMS IS A CORPORATION THAT HAS MEMBERS. ANYONE DONATING $100 TO MEMORIAL HEALTH CARE SYSTEMS CAN FILL OUT AN APPLICATION AND BECOME A MEMBER. MEMORIAL HEALTH CARE SYSTEMS CURRENTLY HAS ABOUT 604 CORPORATE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF MEMORIAL HEALTH CARE SYSTEMS (AS DESCRIBED ON FORM 990, PART VI, SECTION A, LINE 6) ELECT THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS OF MEMORIAL HEALTH CARE SYSTEMS (AS DESCRIBED ON FORM 990, PART VI, SECTION A, LINE 6) APPROVE ANY CHANGES IN THE ARTICLES OF INCORPORATION AND ANY CHANGES TO THE BYLAWS THAT EFFECT THE ELECTION OF THE BOARD OF DIRECTORS (VOTING RIGHTS). THE MEMBERS WOULD ALSO APPROVE ANY SIGNIFICANT DECISIONS, SUCH AS THE SALE OR MERGER OF THE CORPORATION OR A SALE OF ALL OF THE ASSETS OF THE CORPORATION. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH THE AUTHORITY TO ACT ON BEHALF OF THE BOARD. ANY COMMITTEE WHICH REPORTS TO THE BOARD HAS ITS REPORT DOCUMENTED IN THE MINUTES OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11 THE CHIEF FINANCIAL OFFICER IS RESPONSIBLE FOR THE TIMELY FILING OF THE FORM 990 AND ENSURING COMPLIANCE WITH ALL RELATED RULES AND REGULATIONS. THE ACTUAL FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM. ALL INFORMATION IS PROVIDED BY THE ORGANIZATION TO THE ACCOUNTING FIRM WHO THEN PREPARES THE FORM 990 FOR SUBMITTAL TO THE IRS. PRIOR TO SUBMISSION TO THE IRS, THE CFO OF THE ORGANIZATION WILL REVIEW THE FORM 990 AND APPROVE IT FOR SUBMITTAL. A COPY OF THE FORM 990 WILL BE MADE AVAILABLE TO THE BOARD OF DIRECTORS AFTER THE FORM 990 IS FILED. FORM 990, PART VI, SECTION B, LINE 12C EACH MEMBER OF THE BOARD OF DIRECTORS AND ALL SENIOR MANAGEMENT OFFICIALS OF THE ORGANIZATION FILE AN ANNUAL CONFLICT OF INTEREST FORM IN WHICH THEY ARE REQUIRED TO LIST ALL CONFLICTS OF INTEREST. ADMINISTRATION REVIEWS THE ANNUAL CONFLICT OF INTEREST STATEMENTS AND ALL CONFLICTS ARE REPORTED TO THE BOARD CHAIRPERSON. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS PERFORMS AN ANALYSIS OF THE FAIR MARKET VALUE OF COMPENSATION FOR BOTH THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. LONGEVITY, QUALITY OF THE HEALTHCARE SERVICES PROVIDED, COMMUNITY PERCEPTION, AND FINANCIAL PERFORMANCE ARE ALL FACTORED INTO THE ANALYSIS. THE BOARD OF DIRECTORS THEN APPROVES THE COMPENSATION PACKAGES. THE LAST FULL REVIEW AND ANALYSIS WAS DONE IN DECEMBER 2008 AND ANNUAL COMPENSATION WAS SET UNDER THE CEO CONTRACT FOR A 5 YEAR PERIOD OF 2009 THROUGH 2013. THE CFO COMPENSATION WAS REVIEWED BY THE BOARD OF DIRECTORS AT THE SAME TIME AND THE CEO WAS DELEGATED THE AUTHORITY TO ADJUST AND MONITOR CFO COMPENSATION WITHIN THE PARAMETERS SET BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, OR ITS FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. HOWEVER, THE CORPORATE MEMBERSHIP OF THE ORGANIZATION CONSISTS OF OVER 600 MEMBERS OF THE COMMUNITY SERVED. THE CORPORATE MEMBERSHIP APPROVES THE ARTICLES OF INCORPORATION AND THEY RECEIVE AN ANNUAL REPORT CONTAINING SUMMARY FINANCIAL STATEMENTS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 1,074,422. FORM 990, PART XI, LINE 2C: THE FINANCE COMMITTEE OF THE BOARD OF DIRECTORS ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.