2011-11-07T10:05:44-06:00 2010-12-31 WIPFLI LLP 7601 FRANCE AVENUE SOUTH SUITE 400 MINNEAPOLIS MN 55435 990 2010-01-01 411842965 LAKEWOOD HEALTH SYSTEM LAKE 2188941515 49725 COUNTY 83 STAPLES MN 56479 JIM DREGNEY 2188941515 2011-11-01 1 RICHARD RUVELSON 9525483400 2011-11-01 2010 2016-03-07 17:11:31Z JIM DREGNEY 49725 COUNTY 83 STAPLES MN 56479 84163922 0 X WWW.LAKEWOODHEALTHSYSTEM.COM X 1996 MN TO PROVIDE HEALTH CARE SERVICES AND SUPPORT HEALTH AND WELLNESS PROGRAMS FOR THE RESIDENTS OF STAPLES, MINNESOTA AND THE SURROUNDING AREA. 12 7 1008 223 0 0 332752 202842 83595763 82542742 269518 195633 685271 802279 84883304 83743496 0 0 0 0 43021061 42833869 0 0 216834 37885517 38029648 80906578 80863517 3976726 2879979 76805461 77436780 54232805 51992247 22572656 25444533 TO PROVIDE PERSONALIZED HEALTHCARE FOR A LIFETIME. 0 0 65310109 83278252 LAKEWOOD HEALTH SYSTEM PROVIDED FOR 3,710 INPATIENT HOSPITAL DAYS, 35,871 RESIDENT DAYS IN THE CARE CENTER, 486 SENIOR HOUSING UNIT RENTED MONTHS, 276 LAKEWOOD MANOR UNIT RENTED MONTHS AND PROVIDED AMBULANCE, HOSPICE HOME CARE, BEHAVIORAL HEALTH, AND OTHER PATIENT SERVICES. 65310109 1 0 0 1 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 66 0 1008 1 0 0 0 0 0 1 1 0 0 0 0 X 12 7 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 1 1 1 0 MN X JIM DREGNEY CFO 2188941515 49725 COUNTY 83 STAPLES MN 56479 CHRISTINE ALBRECHT MD 1.00 X 0 0 0 JIM HOFER 1.00 X 0 0 0 JULIE BENSON MD 1.00 X 0 0 0 LARRY LUNDBLAD 1.00 X 0 0 0 MARIE ROSE 1.00 X 0 0 0 PAUL WICK 1.00 X 0 0 0 WILLIAM MENNIS MD 1.00 X 0 0 0 LOREN MOREY 1.00 X X 0 0 0 TIM RICE 40.00 X X 341569 0 30836 SARAH ISRAELSON MD 1.00 X X 0 0 0 CAROLYN BISEL 1.00 X X 0 0 0 BARB PETERSON 1.00 X X 0 0 0 JAMES DREGNEY 40.00 X 163319 0 26211 CRAIG WOLHOWE 40.00 X 183131 0 29318 DANIEL DONAHUE 40.00 X 181315 0 30180 LAURIE BACH 40.00 X 179755 0 17953 LYNN NEWTON RICE 40.00 X 176017 0 12679 SHERREE ENGEN 40.00 X 249856 0 31937 ROBERT SCHMIEG 40.00 X 338678 0 25714 BRIAN HINMAN 40.00 X 141849 0 22931 AMY WINKELS 40.00 X 138952 0 27073 REBECCA BENNETT 40.00 X 137374 0 28367 2231815 0 283199 33 0 1 0 LAKEWOOD CLINIC PA 49725 COUNTY 83 STAPLES MN 56479 PHYSICIAN SERVICES 8881933 NOR-SON INC 7900 HASTINGS ROAD BAXTER MN 56425 CONSTRUCTION SERVICES 1231889 CENTRAL MN DIAGNOSTIC 150 10TH STREET NW PO BOX 158 MILACA MN 53653 RADIOLOGY SERVICES 412450 QUEST DIAGNOSTICS PO BOX 12989 CHICAGO IL 60693 LAB TEST SERVICES 385295 ST CLOUD HOSPITAL 1406 SIXTH AVE N ST CLOUD MN 56303 MEDICAL PROFESSIONAL AND DIAGNOSTIC SERV 345632 14 3675 124474 74693 202842 NET PATIENT AND RESIDE 621110 81466248 81466248 OCCUPATIONAL HEALTH 621300 340575 340575 RENTAL REVENUE 531120 271442 271442 MRI & ULTRASOUND 621500 160884 160884 FASD 624100 108401 108401 195192 195192 82542742 272644 272644 332994 410005 -77011 -77011 -77011 34393 3675 10421 23972 23972 FOOD SERVICE 900099 576188 576188 OTHER 900099 202119 159322 42797 778307 83743496 83278252 0 262402 1372282 1372282 31247264 26342061 4872442 32761 738623 596479 141370 774 7212543 5824521 1380460 7562 2263157 1827622 433162 2373 24172 19520 4652 43482 35114 8368 5251717 4241047 992670 18000 352915 284998 67917 10992924 8956853 2033833 2238 3698053 2986379 711674 6099 4925 1174 76093 43547 32546 2080611 1680207 400404 4100190 3311127 789063 279272 225527 53745 MEDICAL FEES 7430665 6000667 1429998 PROVISION FOR BAD DEBTS 1782110 1439151 342959 SURCHARGES 792956 640355 152601 MN CARE TAX 768012 620212 147800 OTHER EXPENSE 350377 229797 120580 80863517 65310109 15336574 216834 5221 5417 5791334 7286928 13303135 12526650 325209 846685 1053489 1069639 1190858 2016769 75426000 27406737 48433263 48019263 790183 697013 5912769 4968416 76805461 77436780 9525526 7080937 43472891 42259456 1193045 2612182 41343 39672 54232805 51992247 X 22352364 25254254 220292 190279 22572656 25444533 76805461 77436780 X 2879979 -8102 X X 0 1 1 X 0 X 0 0 0 0 0 0 0 0 1 624 624 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: THE ORGANIZATION IS A MEMBER OF MINNESOTA HOSPITAL ASSOCIATION AND A PORTION OF THE MEMBERSHIP DUES IS FOR LOBBYING EXPENSES. 815978 815978 33958664 11817607 22141057 40451141 15589130 24862011 200217 200217 48019263 RESIDENT FUNDS 6456 SECURITY DEPOSITS 33216 CENTRACARE LLC 95634 CMDI INVESTMENT 314855 BOND RESERVE FUNDS 2302002 BOND ESCROW FUNDS 698043 FOUNDATION CASH 304210 DUE FROM THIRD PARTY REIMBURSEMENT 1214000 4968416 RESIDENTS PERSONAL ACCOUNT 6456 SENIOR HOUSING DEPOSITS 33216 39672 83743496 80863517 2879979 0 2879979 83753917 10421 10421 83743496 0 83743496 80873938 10421 10421 80863517 0 80863517 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION RECORDED NO ASSETS OR LIABILITIES FOR UNCERTAIN TAX POSITIONS OR UNRECOGNIZED TAX BENEFITS IN 2010 AND 2009. FEDERAL RETURNS FOR 2007 AND SUBSEQUENT YEARS REMAIN SUBJECT TO EXAMINATION BY MAJOR TAX JURISDICTIONS. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EVENT EXPENSE 10,421. PART XIII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EVENT EXPENSE 10,421. DINNER AUCTION 19073 3675 15398 1786 2540 GOLF TOURNAMENT 18995 18995 4051 2044 38068 3675 34393 5837 4584 10421 23972 1 1 0 1 X 240.000000000000 1 1 1 0 0 1752335 1752335 0.02220 21849583 20562064 1287519 0.01630 23601918 20562064 3039854 0.03850 229833 6592 223241 0.00280 45068 0 45068 0.00060 1091399 979068 112331 0.00140 39491 39491 0.00050 1405791 985660 420131 0.00530 25007709 21547724 3459985 0.04380 11085 11085 0.00010 2991 2991 0.00000 14076 14076 0.00010 0 447189 298408 16401971 16411883 -9912 X 1 0 1 1 LAKEWOOD HEALTH SYSTEM

49725 COUNTY ROAD 83 STAPLES MN 56479

X X X X NA 1 6 STAPLES CLINIC

49725 COUNTY ROAD 83 STAPLES MN 56479

CLINIC PILLAGER CLINIC

653 PILLSBURY ST N STE 1 PILLAGER MN 56473

CLINIC MOTLEY CLINIC

1233 HWY 10 MOTLEY MN 56466

CLINIC BROWERVILLE CLINIC

30535 241ST AVE BROWERVILLE MN 56438

CLINIC EAGLE VALLEY CLINIC

815 HWY 71 S EAGLE BEND MN 56446

CLINIC LHS CARE CENTER

401 PRAIRIE AVE NE STAPLES MN 56479

SKILLED NURSING FACILITY PART I, L7 COL(F): THE COSTING METHODOLOGY USED IN DETERMINING THE AMOUNTS REPORTED ON LINES 2 AND 3 WAS A COST-TO-CHARGE RATIO. LAKEWOOD HEALTH SYSTEM DOES HAVE A FINANCIAL ASSISTANCE PROGRAM THAT PROVIDES DISCOUNTED OR FREE CARE TO INDIVIDUALS. LAKEWOOD ALSO IS COMMITTED TO PROVIDING OTHER COMMUNITY BENEFIT AND COMMUNITY BUILDING FUNCTIONS. THE OPPORTUNITY TO PROVIDE MORE DISCOUNTED OR FREE CARE OR PERFORM ADDITIONAL COMMUNITY BENEFIT AND COMMUNITY BUILDING ACTIVITIES IS LIMITED AS BAD DEBT COSTS INCREASE. PART II: LAKEWOOD HEALTH SYSTEM HAS SET ASIDE A SMALL AREA OF LAND ON WHICH A COMMUNITY PARK WAS ESTABLISHED. TO PROMOTE PHYSICAL ACTIVITY IN CHILDREN, LHS PURCHASED PLAYGROUND EQUIPMENT FOR THE PARK. THIS PARK IS THE ONE MOST OFTEN UTILIZED BY CHILDREN AND IS AFFECTIONATELY KNOWN AS THE "DINO PARK" DUE TO SOME OF THE EQUIPMENT HAVING A DINOSAUR THEME.DURING 2010, LAKEWOOD HEALTH SYSTEM CREATED A COMMUNITY RELATIONS DIRECTOR POSITION. THE RESPONSIBILITY OF THIS INDIVIDUAL IS TO WORK WITH VARIOUS COMMUNITY AGENCIES AND INDIVIDUALS TO HELP PROMOTE ECONOMIC GROWTH IN THE COMMUNITIES WHERE A LAKEWOOD HEALTH SYSTEM FACILITY IS LOCATED. PART III, LINE 4: MANAGEMENT PROVIDES FOR PROBABLY UNCOLLECTIBLE AMOUNTS, PRIMARILY UNINSURED PATIENTS AND AMOUNTS PATIENTS ARE PERSONALLY RESPONSIBLE FOR, THROUGH A CHARGE TO OPERATIONS AND A CREDIT TO A VALUATION ALLOWANCE BASED ON ITS ASSESSMENT OF HISTORICAL COLLECTION LIKELIHOOD AND THE CURRENT STATUS OF INDIVIDUAL ACCOUNTS. BALANCES THAT ARE STILL OUTSTANDING AFTER MANAGEMENT HAS USED REASONABLE COLLECTION EFFORTS ARE WRITTEN OFF THROUGH A CHARGE TO THE VALUATION ALLOWANCE AND A CREDIT TO PATIENT ACCOUNTS RECEIVABLE. PART III, LINE 8: THE MEDICARE ALLOWABLE COST OF CARE RELATING TO PAYMENTS ON LINE 5 WERE CALCULATED USING OUR FILED 2010 MEDICARE COST REPORT. PART VI, LINE 2: THE ORGANIZATION CONDUCTS COMMUNITY SURVEYS AND USES PATIENT FEEDBACK TO ASSESS THE NEEDS OF THE COMMUNITIES IT SERVES. PART VI, LINE 3: PATIENT FINANCIAL SERVICES (PFS) STAFF ARE AVAILABLE AND UTILIZED THROUGHOUT THE PATIENT EXPERIENCE. PFS STAFF EDUCATE PATIENTS ON MEANS-TESTED PROGRAMS AVAILABLE TO THE PATIENT AS WELL AS ASSIST THE PATIENT WITH THE CUSTOMER ASSISTANCE APPLICATION PROCESS. PAYMENT PLANS ARE ALSO ESTABLISHED TO ASSIST PATIENTS IN PAYING OFF OBLIGATIONS OWED TO THE ORGANIZATION. PART VI, LINE 4: LAKEWOOD HEALTH SYSTEM OFFERS A BROAD SPECTRUM OF CARE. OUR SYSTEM INCLUDES A NEW, STATE-OF-THE-ART MAIN CAMPUS WITH A 25-BED, CRITICAL ACCESS HOSPITAL AND CLINIC (STAPLES, MN); FOUR MODERN SATELLITE CLINICS (BROWERVILLE, PILLAGER, MOTLEY & EAGLE BEND, MN), SENIOR SERVICES, HOUSING AND A SPECIALIZED SENIOR BEHAVIORAL HEALTH UNIT (STAPLES, MN), AND A MEDICAL SPA (BAXTER, MN). WE ALSO HAVE ON-STAFF SPECIALISTS AND VISITING PARTNERS, WHICH ALLOWS US TO OFFER COMPREHENSIVE CARE IN THESE VARIOUS COMMUNITIES. ITS NEIGHBOR, MOTLEY, IS JUST A FEW MILES AWAY AND HAS ANOTHER 1,000 PEOPLE. THE TWO TOWNS COLLABORATE ON MANY COMMUNITY-WIDE INITIATIVES, INCLUDING THE LOCAL SCHOOL SYSTEM. STAPLES BOASTS MANY ATTRACTIVE STORE FRONTS AND BUSINESSES IN THE DOWNTOWN AREA, GIVING IT A "MAIN STREET USA" FEEL. STAPLES IS PROUD OF ITS RICH HISTORY AND ACCOMPLISHMENTS IN THE AREAS OF BUSINESS, EDUCATION, HEALTH CARE, ATHLETICS AND CULTURAL ACTIVITIES. COMMUNITY INVOLVEMENT, PASSION, AND LOYALTY IS ALIVE AND WELL IN STAPLES -- FROM THE TOWN RALLYING AROUND LOCAL SPORTS TEAMS, TO ATTENDING CONCERTS AND OTHER FINE ARTS-RELATED EVENTS, TO SUPPORTING LOCAL PHILANTHROPIC EFFORTS, TO CULTURAL ACTIVITIES REPRESENTING THE STRONG SCANDINAVIAN & FINNISH ANCESTRIES IN THE AREA. PART VI, LINE 6: A MAJORITY OF THE ORGANIZATION'S GOVERNING BODY IS COMPRISED OF PERSONS WHO RESIDE WITHIN LAKEWOOD'S PRIMARY SERVICE AREA.LHS PROVIDES SPECIAL SERVICES INCLUDING PALLIATIVE CARE, MEDICAL HOME, AND HOME HEATLH, FOR THE COMMUNITY. LHS'S EMERGENCY ROOM IS AVAILABLE TO ALL DESPITE PATIENT FINANCIAL IMPLICATIONS. THERE ARE NO LIMITS IN REGARDS TO THE AMOUNT OF CHARITY CARE OR CAP PROGRAM PARTICIPANTS. GOVERNMENT HEALTH SPONSORED PROGRAMS WOULD INCLUDE MEDICARE AND MEDICAID. LHS IS THE SOLE COMMUNITY PROVIDER IN THE STAPLES AREA. PART VI, LINE 7: N/A REPORTS FILED WITH STATES PART VI, LINE 7 MN X X X 0 0 0 0 0 0 0 0 0 TIM RICE 341569 0 0 0 0 0 8546 0 22290 0 372405 0 0 0 JAMES DREGNEY 163319 0 0 0 0 0 0 0 26211 0 189530 0 0 0 CRAIG WOLHOWE 183131 0 0 0 0 0 6604 0 22714 0 212449 0 0 0 DANIEL DONAHUE 181315 0 0 0 0 0 6515 0 23665 0 211495 0 0 0 LAURIE BACH 179755 0 0 0 0 0 6397 0 11556 0 197708 0 0 0 LYNN NEWTON RICE 176017 0 0 0 0 0 6314 0 6365 0 188696 0 0 0 SHERREE ENGEN 249856 0 0 0 0 0 8546 0 23391 0 281793 0 0 0 ROBERT SCHMIEG 338678 0 0 0 0 0 703 0 25011 0 364392 0 0 0 BRIAN HINMAN 141849 0 0 0 0 0 226 0 22705 0 164780 0 0 0 AMY WINKELS 138952 0 0 0 0 0 4998 0 22075 0 166025 0 0 0 REBECCA BENNETT 137374 0 0 0 0 0 4987 0 23380 0 165741 0 0 0 UNITED HOSPITAL DISTRICT TODD MORRISON CASS AND WADENA COUNTIES MN 416005558 88903ABXX 2004-12-01 32000000 NEW HOSPITAL CONSTRUCTION 0 0 0 UNITED HOSPITAL DISTRICT TODD MORRISON CASS AND WADENA COUNTIES MN 416005558 2007-10-31 4800000 SENIOR CAMPUS RENOVATION 0 0 0 UNITED HOSPITAL DISTRICT TODD MORRISON CASS AND WADENA COUNTIES MN 416005558 2003-09-15 5093625 CONSTRUCTION OF MEDICAL CLINIC AND REFINANCE DEBT 0 0 0 UNITED HOSPITAL DISTRICT TODD MORRISON CASS AND WADENA COUNTIES MN 416005558 2003-09-15 612000 LAND OF NEW HOSPITAL 0 0 0 32000000 549307 31450693 2006 0 0 1 1 4800000 114336 1990001 1872860 822803 2008 0 0 0 1 5093625 128683 1036680 1342520 2585742 2004 0 0 1 1 612000 612000 2004 0 0 1 1 0 0 0 0 1 0.04000 0.04000 1 0 0 0 0 1 1 0 0 0 0 1 0.05500 0.05500 1 0 0 0 0 1 1 1 1 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 1 1 0 0 0 0 UNITED HOSPITAL DISTRICT TODD MORRISON CASS AND WADENA COUNTIES MN 416005558 2003-04-01 2049000 REFUND 1996 GENERAL OBLIGATION BONDS 0 0 0 UNITED HOSPITAL DISTRICT TODD MORRISON CASS AND WADENA COUNTIES MN 416005558 2009-04-17 3000000 CONSTRUCTION OF MEDICAL CLINIC AND REMODEL OF MEDICAL CLINIC 0 0 0 2049000 52924 1996076 2003 0 0 1 1 3000000 509462 60000 2430538 2010 0 0 0 1 0 0 0 0 1 1 0 0 0 0 1 0.08500 0.08500 1 1 1 0 0 0 0 0 1 0 0 0 0 CHRISTINE ALBRECHT MDJULIE BENSON MDSARAH ISRAELSON MDWILLIAM MENNIS MD BOARD MEMBERS WITH OWNERSHIP INTEREST IN LAKEWOOD CLINIC, PA 8881933 THE ORGANIZATION HAS A MEDICAL SERVICE AGREEMENT WITH LAKEWOOD CLINIC, PA FOR THE PROVISION OF PHYSICIAN AND OTHER PROFESSIONAL MEDICAL SERVICES. THE AGREEMENT EXPIRES IN 2016. LAKEWOOD CLINIC, PA IS PAID PER A NEGOTIATED PRICE OF RELATIVE VALUE UNIT (RVU). THE RVU IS DETERMINED BASED ON THIRD-PARTY COMPENSATION DATA. 0 FORM 990, PART VI, SECTION A, LINE 2 TIM RICE, PRESIDENT/CEO, IS MARRIED TO LYNN NEWTON RICE, DIVISION DIRECTOR. FORM 990, PART VI, SECTION B, LINE 11 THE PREPARER OF FORM 990 EMAILS A COPY OF THE FINAL 990 TO THE ORGANIZATION'S CHIEF FINANCIAL OFFICER. THE CHIEF FINANCIAL OFFICER PERFORMS A DETAIL REVIEW OF FORM 990. THE CHIEF FINANCIAL OFFICER PROVIDES EACH VOTING BOARD MEMBER WITH A COPY OF FORM 990 BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ANY INTERESTS WHICH WERE IDENTIFIED AS PART OF THE ANNUAL CONFLICT OF INTEREST DISCLOSURE WOULD BE DOCUMENTED IN THE BOARD OF DIRECTOR MEETING MINUTES. FOR ANY BOARD ACTION THAT REQUIRED A VOTE AND COULD BE INFLUENCED BY A CONFLICT, THE AFFECTED BOARD MEMBER IS NOT PERMITTED TO VOTE ON THE ACTION. THE OFFICERS, DIRECTORS, AND KEY EMPLOYEES COMPLETE A FORMAL CONFLICT OF INTEREST DISCLOSURE ANNUALLY. THE ORGANIZATION ALSO CONSIDERS WHETHER OTHER POTENTIAL CONFLICTS OF INTEREST COULD RESULT FOR ANY OF THESE INDIVIDUALS BASED ON POSSIBLE ACTIONS UNDER CONSIDERATION BY THE ORGANIZATION DURING THE YEAR. FORM 990, PART VI, SECTION B, LINE 15 FOR THE CEO, INITIAL COMPENSATION CONSIDERATION IS MADE BASED ON A REVIEW OF SALARY SURVEY DATA COMPILED BY THE MINNESOTA HOSPITAL ASSOCIATION. THIS DATA IS THEN REVIEWED BY THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS. AFTER THIS REVIEW, THE DATA IS SUBMITTED TO THE FULL FINANCE COMMITTEE OF THE BOARD OF DIRECTORS FOR REVIEW ALONG WITH THE ENTIRE ANNUAL BUDGET PACKAGE. FINALLY, THE FULL BUDGET PACKAGE, ALONG WITH ALL SPECIFIC SALARY PROPOSALS ARE SUBMITTED TO THE FULL BOARD OF DIRECTORS FOR FINAL APPROVAL. AT ANY TIME IN THIS PROCESS, ANY OF THE COMMITTEES OR BOARD COULD REQUEST ADDITIONAL INDEPENDENT SALARY INFORMATION SUPPORTING THE PROPOSED SALARY. A FIRM NAMED CLARK CONSULTING IS USED TO PROVIDE ADDITIONAL CEO COMPENSATION DATA. THIS COMPENSATION AMOUNT IS INCLUDED IN THE CEO EMPLOYMENT CONTRACT WHICH IS PREPARED EACH YEAR WITH A ONE YEAR TERM. FOR THE CFO AND THE OTHER DIVISION DIRECTORS, THE PROCESS IS THE SAME EXCEPT THAT THE INDEPENDENT EXTERNAL DATA TYPICALLY STARTS WITH WHAT CLARK CONSULTING PROVIDES. ADDITIONALLY, WE HAVE INCLUDED THE MHA SALARY SURVEY DATA. THIS PROCESS IS UNDERTAKEN ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THESE DOCUMENTS CAN BE REQUESTED FROM THE ORGANIZATION'S CHIEF FINANCIAL OFFICER. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: CHANGE IN NET ASSETS DUE TO RESTATEMENT OF THE 2009 AUDITED FINANCIAL STATEMENTS: -8,102. TOTAL TO FORM 990, PART XI, LINE 5: -8,102. FORM 990, PART XI, LINE 2C THE BOARD OF DIRECTORS ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM PRIOR YEAR.